Latest news with #BenamiTransactions(Prohibition)Act
Hans India
27-05-2025
- Politics
- Hans India
Haryana YouTuber Jyoti Malhotra Faces Rigorous Probe Over Espionage Charges And Pro-Pakistan Content
Jyoti Malhotra, a 33-year-old YouTuber from Haryana who operates the channel 'Travel with JO', is undergoing rigorous interrogation by the National Investigation Agency (NIA), Intelligence Bureau (IB), and military intelligence following her arrest on espionage charges. She was apprehended on May 16, 2025, in New Aggarsain Extension, Hisar, and charged under the Official Secrets Act and the Benami Transactions (Prohibition) Act. Malhotra is among 12 individuals recently detained across Punjab, Haryana, and Uttar Pradesh in a crackdown on a suspected Pakistan-linked espionage network in northern India. As of May 20, 2025, the interrogation, now in its fourth day, has seen limited cooperation from Malhotra, who has invoked her right to freedom of speech. Her custody is set to end on Wednesday. The investigation covers several critical areas: her 2023 trip to Pakistan during Vaisakhi, including who facilitated it and discrepancies in her footage; her connections with Ehsan Dar, a Pakistani official previously declared persona non grata, and whether she maintained contact with him; her visa overstay in 2024 and the pro-Pakistan tone of her videos; a controversial Pahalgam video where she blamed Indian security forces; and other Pakistani contacts she may have had. Authorities are also examining encrypted chats on her devices, her use of secure communication tools like Signal and Telegram, and her international travel history to countries like China and Dubai. Additionally, they are probing whether she was instructed to gather footage from sensitive locations like Kartarpur or Kashmir, and if she acknowledges any responsibility in the alleged espionage activities.
Economic Times
30-04-2025
- Business
- Economic Times
Taxman invokes benami law to get data from payment gateways
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel The Income-Tax (I-T) Department has invoked the benami law to fish out information from a few payment gateway (PG) least two firms have been told to disclose the identities of persons linked to a string of United Payment Interface (UPI) IDs, the entities who received money, and details like transaction date, amounts, and bank account offer a network for customers to send money to businesses and merchants. Shell companies posing as merchants sometimes register themselves with PGs to move tax office, probably based on feedback it has received, would verify whether some merchants are holding money on behalf of others; or, if sham merchants are helping fund remitters book bogus expenses to evade tax. Here, the receiver later returns the funds in cash to the notices were issued under Section 23 of the Benami Transactions (Prohibition) Act, 1988."Tax authorities appear to be using the wider powers under Section 23. Unlike the I-T Act, seeking information under this needs not be linked to any open or pending proceeding. The data can be used to conduct any investigation though with prior approval of the additional or joint commissioner. So, receivers of such notices should comply without fail," said Rahul Garg, managing partner of Asire Consulting, which advises MNCs on tax and regulatory the I-T returns of recipients do not reflect the amounts, the department could probe whether they are fronts for others. A benami deal is a transaction or an arrangement where a property or assets like stocks or funds is "transferred" to or is "held" by a person but the consideration of such property has been provided or paid by another person. In other words, the holder of the asset (the front) is not its true beneficial it's mandatory for PGs, regulated by RBI, to do know-your-customer (KYC) formalities before registering merchants, they could be asked to explain if there are KYC lapses."Section 23 enquiry can be initiated based on any material or information that may arise from various sources, including tax departments, RBI, the Enforcement Directorate or other government agencies. If the evaluation suggests the likelihood of a benami transaction, the IO may issue a notice under Section 24 seeking an explanation," said Ashish Karundia, founder of CA firm Ashish Karundia & to advocate and former ITAT member Ashwani Taneja, "In regard to payments made through PGs, if there is a proper, open, and well-documented agreement between the two entities-where one officially receives payments on behalf of the other and acts only as a payment aggregator/payment gateway, and this arrangement is declared to relevant government departments, it would be legally wrong to call it a benami transaction. However, if the setup is informal and tacit, especially where the real people behind the businesses are hidden, then a benami arrangement could be suspected. Also, when the people running the business are different from those whose names and KYC documents are officially recorded." He said it would not be fair to hold PGs responsible for transactions done by unknown third parties which are not under their control.
Time of India
30-04-2025
- Business
- Time of India
Taxman invokes benami law to get data from payment gateways
The Income-Tax (I-T) Department has invoked the benami law to fish out information from a few payment gateway (PG) companies. #Pahalgam Terrorist Attack A Chinese shadow falls on Pahalgam terror attack case probe How India can use water to pressure Pakistan Buzzkill: How India can dissolve the Pakistan problem, not just swat it At least two firms have been told to disclose the identities of persons linked to a string of United Payment Interface (UPI) IDs, the entities who received money, and details like transaction date, amounts, and bank account numbers. Gateways offer a network for customers to send money to businesses and merchants. Shell companies posing as merchants sometimes register themselves with PGs to move money. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Discover how to go from draft to done in a few clicks—not a few hours. Grammarly Install Now Undo The tax office, probably based on feedback it has received, would verify whether some merchants are holding money on behalf of others; or, if sham merchants are helping fund remitters book bogus expenses to evade tax. Here, the receiver later returns the funds in cash to the sender. Live Events The notices were issued under Section 23 of the Benami Transactions (Prohibition) Act, 1988. "Tax authorities appear to be using the wider powers under Section 23. Unlike the I-T Act, seeking information under this needs not be linked to any open or pending proceeding. The data can be used to conduct any investigation though with prior approval of the additional or joint commissioner. So, receivers of such notices should comply without fail," said Rahul Garg, managing partner of Asire Consulting, which advises MNCs on tax and regulatory matters. If the I-T returns of recipients do not reflect the amounts, the department could probe whether they are fronts for others. A benami deal is a transaction or an arrangement where a property or assets like stocks or funds is "transferred" to or is "held" by a person but the consideration of such property has been provided or paid by another person. In other words, the holder of the asset (the front) is not its true beneficial owner. Since it's mandatory for PGs, regulated by RBI, to do know-your-customer (KYC) formalities before registering merchants, they could be asked to explain if there are KYC lapses. "Section 23 enquiry can be initiated based on any material or information that may arise from various sources, including tax departments, RBI, the Enforcement Directorate or other government agencies. If the evaluation suggests the likelihood of a benami transaction, the IO may issue a notice under Section 24 seeking an explanation," said Ashish Karundia, founder of CA firm Ashish Karundia & Co. According to advocate and former ITAT member Ashwani Taneja, "In regard to payments made through PGs, if there is a proper, open, and well-documented agreement between the two entities-where one officially receives payments on behalf of the other and acts only as a payment aggregator/payment gateway, and this arrangement is declared to relevant government departments, it would be legally wrong to call it a benami transaction. However, if the setup is informal and tacit, especially where the real people behind the businesses are hidden, then a benami arrangement could be suspected. Also, when the people running the business are different from those whose names and KYC documents are officially recorded." He said it would not be fair to hold PGs responsible for transactions done by unknown third parties which are not under their control.
Time of India
25-04-2025
- Business
- Time of India
Fee hike: Schools sell properties, lease them back, reveals I-T probe
Hyderabad: Investigation by the income tax (I-T) department, under the Benami Transactions (Prohibition) Act, has revealed a disturbing pattern behind rising school fee in Hyderabad. Officials found that several educational trusts and societies sold their land and buildings to commercial and foreign entities and continued to operate by leasing back the same infrastructure. The shift from owner-operated campuses to rental models significantly increased operational costs, which are now being passed on to parents through steep tuition fee hikes. Rental Burden Behind Fee Escalation You Can Also Check: Hyderabad AQI | Weather in Hyderabad | Bank Holidays in Hyderabad | Public Holidays in Hyderabad An official of the education department said, "Once the infrastructure is sold, the school trust becomes a tenant, incurring substantial rental and maintenance charges imposed by the new owners. These commercial entities, particularly foreign investors, seek quick returns on their capital, placing financial pressure on schools. The additional costs are ultimately covered through increased school fee." In Hyderabad, in the past few years, Singapore, Hong Kong, and other foreign-based firms reportedly acquired schools whose assets were worth between 500 crore and 1,500 crore. Venkat Sainath Kadapa, general secretary, Hyderabad School Parents' Association, said, "Trusts and societies are supposed to be non-profit. When there are huge transactions involving hundreds of crores of rupees with foreign entities, these transactions must be scrutinised. The govt should revoke the not-for-profit status in such cases. All the burden is being placed on children. Many schools are being taken over and, as a result, fee is hiked every year. When news comes out, the govt pretends to act, but then the fee goes up again. There are schools now charging between 4 lakh and 8 lakh per annum even for LKG. Some schools collect as much as 23 lakh. The I-T authorities should focus on cashless transactions by schools. The audited reports of these societies must be made public." Parents Bear the Impact as Fees Rise This emerging model has drawn criticism from parents and education activists. The Hyderabad School Parents' Association had earlier alleged the diversion of school revenues to shell firms and the involvement of foreign private equity. With mounting operational expenses, the Telangana Recognised School Managements Association (TRSMA) has sought approval for a 15% annual fee hike.
