BENAMI TRANSACTION PROHIBITION ACT 1988 PDF
The original law relating to Benami transactions was laid down in The Benami Transactions (Prohibition) Act, This Act consisted of only. An Act further to amend the Benami Transactions (Prohibition) Act, BE it enacted by Parliament in the Sixty-seventh Year of the Republic. Benami Property Transactions Act, has been amended by the Benami Transactions (Prohibition) Amendment Act, (BTP Amendment.
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Prohibition of Benami Property Transactions Act,
The inclusion of arrangements has thus widened the definition of benami transaction and has effectively plugged the loophole in the Act. Retrieved 28 October Get done in 7 mins. Worldwide Europe European Union U.
India January 2 Chapter IV of the Amendment Act lays down the procedure for attachment, adjudication and confiscation of benami property and Section 24 of the Amendment Act provides the accused an opportunity to show cause as to why a property should not be treated as a benami property, thus opening a scope for trial.
Views Read Edit View history. The Amendment Act provides wide powers to the authorities in relation to calling for information from, and impounding records of, any person including from any officer of the Government. Accordingly, benaami Benami Transactions Prohibition Act, was enacted by the Parliament which came into force on 19 May An Act to prohibit benami transactions and the right to recover property held benami and for matters connected therewith or incidental thereto. Revoke provisional prohibitioon if satisfied the property is not benami.
benammi It also states that properties held benami are liable for confiscation by the government without payment of compensation. Several benami transactions have been identified since the coming into effect of the amended law. When a property is held by: Ministry of Financeina writ petition was filed in Delhi High Court with a prayer to have the Court transactlon a competent authority contemplated under Section 5 of the Act, and thereby frame rules in relation to the procedure to be adopted by the said authority for acquiring benami properties.
Benami Transactions (Prohibition) Act, 1988
However, it prohibltion equally interesting to note that the Amendment Act does not curb any mischief with respect to transfer of a benami property to a third party progibition. The amended law empowers the specified authorities to provisionally attach benami properties which can eventually be confiscated. The Amendment Act seeks to cover comprehensively all aspects of transactions or arrangements where the source of funding for acquisition of a benami property has no permissible links to the ownership structure.
Issue of Show Cause Notice by Initiating Officer where he has reason to believe that any person is a benamidar in respect of a property. The reason for bringing an Amendment Act instead of a new Act is that the Primary Act has penal provisions and penal provisions cannot be applied retrospectively. Sat, Oct acf It further prohibits a benamidar from transferring the benami property to the beneficial owner or any other person acting on his behalf.
The authority will decide within a year if the property prrohibition benami. Benami transactions have been a bane of the Indian economy since the s, requiring a comprehensive legislation to curb the effects of such transactions which cripple a growing economy.
Further, vide Notification No. What is a Benami transaction?
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However, the Primary Act was not comprehensive enough and lacked to make a big impact. The real estate sector has been one of the top-most contributors to the country’s Gross Domestic Product GDP and employment creation. Retrieved from ” https: Continuing provisional attachment or ordering provisional attachment where not satisfied that property is not benami and refer a statement of case to Adjudicating Authority.
The Amendment Act seeks to clearly define the benami transactions, establish adjudicating authorities and an Appellate Tribunal to deal with benami transactions, and specifies the penalty for entering into benami transactions.
Register now for your free, tailored, daily legal newsfeed service. In light of the transacyion, Chapter III of the Amendment Act seeks to remove the lacunae of the Act and provide more clarity on the aforesaid issue.
It is imperative to note that all offences under this Act are non-cognizable and shall not bar the application of any other applicable law for the time being in force including but not limited to a separate action under the Income Tax Act, Upon passing of the order, the Initiating Officer shall refer the same to the Adjudicating Authority for hearing and orders. The Benami Transactions Prohibition Amendment Act, seeks to give the government powers to confiscate benami properties—assets held in the name of another person or under a fictitious name to avoid taxation and conceal unaccounted-for wealth.
The Amendment Act increases the scope of transactions which qualify as benami and includes property transactions where: In an attempt to curb black money, in JulyModi government decided to amend the original act  which was subsequently passed by the Parliament of India as “The Benami Transactions Prohibition Amendment Act, “.
The Act is necessary to reduce generation and utilization of unaccounted black money. Please contact customerservices lexology.
Benami Transactions (Prohibition) Act – A Study in Comparison – Lexology
Updated on Oct 30, – In cases where the price is not ascertainable, another procedure will be prescribed. The Act also has safeguard mechanisms such as the adjudicating authority and the appellate mechanism for appeals.
Kan Singh AIR SCexplained Benami Transaction as “Where a person buys a property with his own money but in the name of another person without any intention to benefit such other person, the transaction is called benami. Food, Drugs, Healthcare, Life Sciences.
Appeals against orders of the Proohibition Tribunal will be to the respective High Court with jurisdiction. Real estate is considered as one tranaction the major avenues for investment of unaccounted money in India. Instances of Benami transactions Punishment under the Benami act. Do you have a Question or Comment? File all GST returns for your clients with automated data reconciliation – No download required.
The person who pays for the property is the real beneficiary, either at present or at some point in the future, but is not recorded as the legal owner of the property. The Amendment Act increases the scope of transactions which qualify as benami and includes property transactions where:.