The Income tax department has announced a very lucrative scheme for the tax informants – “Income Tax Informants Reward Scheme, 2018”.
This scheme will supersede all the previous reward schemes announced by the Income Tax department. The Income tax department has launched this reward scheme to encourage people to share any information to unearth black money and to expose tax evasion. The main objective of launching such lucrative reward scheme is to curb Benami transactions.
Benami property is a property which is purchased in some other name than the name of the individual actually purchasing it. Properties bought in the name of spouse or child fall in this category.
The transaction involved in this is called Benami transactions.
Under this scheme an informant can earn up to Rs. 5 Crore for giving specific information about any Benami transaction or about substantial tax evasion on income and assets abroad.
Foreigners will also be eligible for reward under this scheme. The Identity of the informant will be kept confidential.