Govt may shut down 7 lakh shell(benami) companies in war on black cash

[egodoc222]

http://m.timesofindia.com/india/gov...in-war-on-black-cash/articleshow/57382856.cms

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HIGHLIGHTS

• Many of these firms had deposited huge amounts of cash in banks following demonetisation.
• The government has involved multiple agencies with the CBDT playing a key role.
• The I-T dept also gathered a wealth of information on these “dormant“ companies.

NEW DELHI: The government has expanded the ambit of its fight against black money and is looking to curb institutional money laundering by shutting down "dormant" companies, suspected to be anywhere between 6 to 7 lakh. Many of these firms had carried out high-value transactions and deposited huge amounts of cash in banks following the Central Board of Direct Taxes (CBDT) playing a key role. A senior CBDT official said the I-T department has gathered information on shell companies which made huge deposits in the twomonth period post-demonetisation when companies and individuals were allowed to deposit scrapped notes of Rs 500 and Rs 1,000 in banks.

The I-T department also gathered a wealth of information on these "dormant" companies. These firms had managed to remain under the radar till now by not filing annual returns with the Registrar of Companies (RoC). The government has involved all major revenue intelligence agencies in the exercise, besides the Security and Exchange Board of India, the RBI, the Intelligence Bureau and the corporate affairs ministry, the official said. The CBDT is believed to have impressed upon the government that once these 6-7 lakh dormant firms are deregistered, it could bring an end to "institutional money laundering" in the country.

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Shell companies have no actual business operation or assets. They are merely used by "entry operators" to launder money on behalf of clients. The CBDT has prepared an integrated databank of suspected shell companies and entry operators and is in the process of matching recent banking transactions with other suspect "dormant" companies. The data also includes information gathered from property registration, suspicious transaction reports shared by the Financial Intelligence Unit and foreign bank accounts. This data was further identified against PAN and registered address of suspected entities.
BJP is hell bent to break the status quo against corruption!!

 

[somebozo]

They may be in for a lot of surprise ahead..!

 

[Robinhood Pandey]

While results are yet to be seen . . .full marks for the intention to fight against black money.

Jai Hind !

 

[Indika]

http://m.timesofindia.com/india/gov...in-war-on-black-cash/articleshow/57382856.cms

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HIGHLIGHTS

• Many of these firms had deposited huge amounts of cash in banks following demonetisation.
• The government has involved multiple agencies with the CBDT playing a key role.
• The I-T dept also gathered a wealth of information on these “dormant“ companies.

NEW DELHI: The government has expanded the ambit of its fight against black money and is looking to curb institutional money laundering by shutting down "dormant" companies, suspected to be anywhere between 6 to 7 lakh. Many of these firms had carried out high-value transactions and deposited huge amounts of cash in banks following the Central Board of Direct Taxes (CBDT) playing a key role. A senior CBDT official said the I-T department has gathered information on shell companies which made huge deposits in the twomonth period post-demonetisation when companies and individuals were allowed to deposit scrapped notes of Rs 500 and Rs 1,000 in banks.

The I-T department also gathered a wealth of information on these "dormant" companies. These firms had managed to remain under the radar till now by not filing annual returns with the Registrar of Companies (RoC). The government has involved all major revenue intelligence agencies in the exercise, besides the Security and Exchange Board of India, the RBI, the Intelligence Bureau and the corporate affairs ministry, the official said. The CBDT is believed to have impressed upon the government that once these 6-7 lakh dormant firms are deregistered, it could bring an end to "institutional money laundering" in the country.

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Shell companies have no actual business operation or assets. They are merely used by "entry operators" to launder money on behalf of clients. The CBDT has prepared an integrated databank of suspected shell companies and entry operators and is in the process of matching recent banking transactions with other suspect "dormant" companies. The data also includes information gathered from property registration, suspicious transaction reports shared by the Financial Intelligence Unit and foreign bank accounts. This data was further identified against PAN and registered address of suspected entities.
BJP is hell bent to break the status quo against corruption!!

Great news ,Govt should first target benamis, before going against corps. Chances against corps are pretty as they will have money power to hire lawyers and create more shell companies to escape the clutches of law. Individuals cannot do such thing without living much trace behind.

 

[egodoc222]

While results are yet to be seen . . .full marks for the intention to fight against black money.

Jai Hind !

Time will only how effective the measures are....but here we have a govt that is breaking status quo on fight against corruption....that's a good sign!!

 

[Skull and Bones]

Next line of attack should be on benami properties.

 

[egodoc222]

Next line of attack should be on benami properties.

That requires a new law...which the parliament has to pass...I doubt the opposition will support it!

 

[Nilgiri]

That requires a new law...which the parliament has to pass...I doubt the opposition will support it!

Money bill, Lok Sabha only, lick mah nutz opposition

 

[Jugger]

Next line of attack should be on benami properties.

This is absolutely necessary step, benami property is where the black money gets its final resting place.
Also don't forget gold hoarding.

 

[ranjeet]

That requires a new law...which the parliament has to pass...I doubt the opposition will support it!

Benami Transaction Act was passed in August last year and came into effect last novemeber.

Black money: Benami Property Transactions Prohibition Act comes into force

http://economictimes.indiatimes.com/articleshow/55187042.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

 

[egodoc222]

This is absolutely necessary step, benami property is where the black money gets its final resting place.
Also don't forget gold hoarding.

And there will be law against gold hoarding to....rumor is they will limit the gold a woman can have at 500gms, men a maximum of 250gms and children at 250gms!!
If they want to invest more in gold....they have to buy the gold bonds!!

 

[Soumitra]

this shows the intent to fight black money and corruption. Demonetization was the first important step

 

[Star Wars]

This along with benami properties will also reduce property prices considerably.