Upto 7 years jail for those depositing their unaccounted black money in other's bank account!

In order to hide or exchange the unaccounted black money, people are resorting to their friends or relatives by using their accounts. A transaction where such an activity of depositing old Rs. 500 and Rs. 1000 notes by a person in the bank account of another person for obtaining it later comes under the ambit of Benami transactions. And with the Benami Property Transactions Act, 1988 coming into full effect, any such Benami transaction shall be penalized and prosecuted.

The Income Tax Department will keep a watch on all such transactions and notices will be issued to all the persons involved. In such a case, the person depositing the black money (the beneficial owner) and the person in whose account this black money is converted into white money (benamidar) and any other person involved will be punished with an imprisonment ranging from 1 - 7 years.

Further, even the Benami amount will be seized and the accused person(s) will be liable to a fine up to 25% of the value of the Benami transaction.

Thus, in case, you are involved in such transaction or even if thinking too, just beware!