An act to prohibit benami transactions and the right to recover property held benami and for matters connected therewith or incidental thereto. Benami transactions prohibition act section 4 judgments. Reference was made to parliamentary committee for its recommendations on 15th may, 2015. The act prohibits benami transactions and provides for confiscating benami properties. The act prohibits resale of the benami property from the benamidar to the real owner or to any person acting.
What is benami transactions prohibition amendment act, 2016. Benami transactions prohibition amendment act, 2016 mains. Feb 01, 2018 how new law changes the definition of benami assets a person booking a property in the name of her father can find herself on the wrong side of the law if tax officials are convinced that father does not use the property. J benami property transactions act, 1988, as amended by benami transactions prohibition amendment act, 2016 hereinafter referred to as the act for brevity, anyproperty acquired byaperson inthe name ofabenamidar other than hisclose family members or infiduciary capacity, isliabletobeattached. The income tax department never asks for your pin numbers, passwords or similar access information for credit cards, banks or other financial accounts through email the income tax department appeals to taxpayers not to respond to such emails and not to share information relating to their credit card, bank and other financial accounts. The benami transactions prohibition act property lawsin india at, a website for indian laws and bareacts, legal advice. C a transaction or an arrangement in respect of a property where the owner of the property is not aware of, or, denies knowledge of such ownership d a transaction or an arrangement in respect of a. An act further to amend the benami transactions prohibition act, 1988. The benami transaction prohibition act, 1988 hereinafter referred as the act was enacted in order to prohibit all benami transactions and recovery of property which has been held as benami.
Benami transaction the concept 2 ca sagar tilak sagar. Apr 23, 2018 benami transaction prohibition act, 1988. The word benami transactions is defined in section 29 of the same act to mean a transaction or an arrangement where a property is transferred to, or is held by, a person, and the consideration for such property has been provided, or paid by, another person. Although the prohibition of benami property transactions act came into force in 2016, not many investorsproperty buyers understand its full implications. Black money law bml is a strong action, part of a strong multilateral attack on tax evasion as well as tax planning. Words and expressions used but not defined in these rules shall have the same meaning as assigned thereto in the trusts act, 1882 il of 1882, the.
The benami transactions prohibition amendment bill, 2015 prevents all persons from entering into benami transactions. Show cause notices for provisional attachment of benami properties have been issued in 140 cases involving properties of the value of about rs. The act is applicable from 1988 y benami property transaction and the persons involved are liable for consequences in accordance with the law prevalent at that point of time. Be it enacted by parliament in the sixtysixth year of the republic of india as follows. Key highlights of benami transactions prohibition amendment. The new law amended the benami transactions act, 1988 and renamed as the prohibition of benami property transactions pbpt act, 1988.
The bill was mainly the updated version of the benami transactions bill that was passed in the lower house of the parliament in the year 1998. The act was designed to curb black money and the latest amendments are aimed at giving the act some teeth in terms of legal and administrative procedure. Importance of service of documents referred in the show cause notice issued under indian income tax act, 1961 and indian black money undisclosed foreign income and assets and imposition of tax act, 2015 criminal law 19 may 17. Black money law an analysis by ca rashmin chandulal sanghvi 15th august, 2015. Benami property transaction prohibition act the benami transactions prohibition act of 1988 wasnt brought into operation on account of some defects inherent in the act. The aim of the benami transaction act is to prohibit benami transactions. Article deterrences of benami transaction prohibition amendment act, 2016, an evaluation dr. The pbpt act is now targeting black money in the domestic market, and identify people entering into benami transactions to evade tax or to avoid payment to creditors.
The benami transactions prohibition amendment bill, 2015. Any property which is subject matter of benami transaction, shall be liable to be. The actual beneficiary is the person financing the deal. The amendment act brings within its purview several changes to the benami transactions prohibition act, 1988 1988 act.
With this the government has tried to make two pronged attack. Nothing in the benami transactions prohobition act shall affect the provisions of sec. The bill seeks to amend the benami transactions prohibition act, 1988 referred hereto as the principal act by introducing following amendments in the said act inserts a new chapter i before section 1 of the principal act, which states that now the principal act shall be called. The benami transactions prohibition act, 2017 act no.
How benami law changes impact both old and new property. Nothing in this act shall affect the provisions of section 53 of the transfer of property act, 1882 4 of 1882, or any law relating to transfers for an illegal purpose. Authorities, which have been specified, are empowered to attach. Section 3 of the prohibition of benami property transactions act, 1988 states that no person shall enter into any benami transaction 2. The paper thus seeks to analyse the meaning of benami transactions and what colour it has taken over these years. Several benami transactions have been identified since the coming into effect of the amended law. The original law relating to benami transactions was laid down in the benami transactions prohibition act, this act consisted of only. The benami transactions prohibition amendment bill, 2016 was introduced in lok sabha on th may, 2015. However, this 1988 act, ie, the current act, hasnt had effective provisions and implementation. It states that any person entering into a benami transaction shall be liable for prosecution. In case of demonetisation, if a person deposits his old currency in the account of another person with an arrangement such that, that the account holder will return the money in new currency is also a benami transaction. The real estate bill which regulates the market and with this benami transactions prohibition bill, the government can control the layering that happens, where lot of black money is converted to white. In addition to it, the benami bill is to curb domestic black money. The act defines a benami transaction as any transaction in which property is transferred to one person for consideration paid by another person.
The bill seeks to amend the benami transactions prohibition act, 1988 to. Group 8 benami transactions act ppt free download as powerpoint presentation. Benami transactions prohibition amendment bill, 2015. Key comparatives benamitransactions prohibition act 1988 amendedact 2016 9 sections 72 sections acquisition of property confiscation of property. Any property, which is subject matter of benami transaction, shall. Act means the benami transactions prohibition act, 2017 v of chapter means a chapter of the act. The ppt gives details about benami transaction prohibition act. The benami transactions prohibition amendment act, 2016, designed to curb black money and passed by parliament in august 2016, came into effect. B a transaction or an arrangement in respect of a property carried out or made in a fictitious name or. Bill 2015 on th may 2015 president assent on 10 th august 2016 5 ca sagar tilak sagar. Guide to the prohibition of benami property transactions act. Under the old benami law the government could only acquire the benami property for which a consideration had to be paid. After the promulgation of the proposed act, all benami transactions will be punishable crime in the manner laid down in the act and all benami properties can be confiscated by the federal government, after due process of law.
The bill was mainly the updated version of the benami transactions bill that was passed in. The act amends the existing benami transactions prohibition act, 1988, and came into effect on november 1, 2016. In real estate, the financial transactions and black money is very rampant. The benami transactions prohibition amendment act, 2016 came into effect from1st november, 2016. Last month, the lok sabha passed a comprehensive benami transactions prohibition amendment bill, 2015, with the intent of bringing unaccounted money into the system, as well as seizing benami property and prosecuting those indulging in such activities. Benami transactions prohibition act, 1988 wikipedia. Any property which is the subject matter of a benami transaction and also includes the proceeds from such property.
This act uses the word benami to define a transaction in which the actual beneficiary is not the one in whose name the property is purchased who is basically an identity cloak the benamidar. The modified new legislation will be known as prohibition of benami property transactions act, 1988 pbpt act. Kan singh air 1980 sc 727, has explained benami property transaction as. Jan 02, 2017 benami transactions prohibition act a study in comparison. By clearing the 2015 amendment bill, the implementation of the provisions to control benami transaction is hoped to be achieved. These are the black money undisclosed foreign income and assets and imposition of tax act, 2015. How new law changes the definition of benami assets a person booking a property in the name of her father can find herself on the wrong side of the law if tax officials are convinced that father does not use the property. Benami transactions prohibition amendment act, 2016. The act prohibits benami transactions and provides for confiscating of benami properties. Whoever enters into any benami transaction on and after the date of commencement of the benami transactions prohibition amendment act, 2016, shall, be punishable in accordance with the provisions contained in chapter vii section 5. One such serious and sound step is enactment of the benami transactions prohibition amendment act 2016. The benami transaction bill was amended in the year 2015 and it was primarily done for the purpose of tracing the illegal transactions and in turn, confiscating them. Section 3 of the act, prohibits benami transaction, but if the property is purchased in the name of unmarried daughter and wife for their benefits, then same will not be affected by the act, admittedly, the property was acquired in the year to decide the controversy the relevant provisions of the act may be referred to. Benami transaction is defined under s 21 so as to mean any transaction in which property is transferred to one person for consideration paid or provided by another person.
The act prohibits benami transactions and provides for confiscating of. Short title, extent and commencement 1 this act may be called the benami transactions prohibition act. The benami transactions prohibition amendment bill, 2015 was introduced in lok sabha on may, 2015 by the minister of finance mr. The benami transactions prohibition act, 1988 an act to prohibit benami transactions and the right to recover properly held benami and for matters corrected therewith or incidental thereto. Benami transactions prohibition amendment act 2016 ias. Implications of benami transactions prohibition amendment bill. Law of the land the benami transactions prohibition. The benami transactions prohibition amendment bill, 2015 a bill further to amend the benami transactions prohibition act, 1988.
Prosecution provisions in respect of benami transaction entered into on or after 01. By clearing the 2015 amendment bill, the implementation of the provisions to control benami transaction is hoped to be achieved efficiently. The union cabinet has approved new amendments to the benami transactions prohibition amendment bill, 2015. It is covered under the polity section of the ias exam. Iv2007bc459 the complaint could not have been thrown out at the threshold. Laws the benami transactions prohibition act section 4. What is benami transactions prohibition amendment act. Prohibition of benami property transactions rules, 2016. Benami transactions prohibition act, 1988 is an act of the parliament of india that prohibits certain types of financial transactions. Benami transactions prohibition act a study in comparison. The act prohibits benami transactions and provides for. In order to effectively prohibit benami transactions, the benami transactions prohibition amended act of 2016 came into operation after the amendment.
Furthermore, there will be prohibition on the retransfer of benami property held by benamidar to the beneficial owner. Evolution of concept of benami transaction in india. According to section 29, benami transaction means a a transaction or an arrangement a where a property is transferred to, or is held by, a person, and the consideration for such property has been provided. Know all about benami property act pdf, people who doesnt pay their taxes and who always try to evade their taxes in some way or the other are the ones responsible for accumulating black money in the economy. Key highlights of benami transactions prohibition amendment act, 2016 a brief introduction the income tax department has notified that the benami transactions prohibition amendment act, 2016 btp amendment act, will come into force from 1st november 2016. Benami transactions bill,2015 daily current affairs. The benami transactions prohibition amendment bill, 2015 was introduced in lok sabha on may, 2015. Benami transactions prohibition act, 1988 name changed to prohibition of benami property transactions act, 1988 by section 3 of the 2016 amendment is an act of the parliament of india that prohibits certain types of financial transactions. The act defines a benami transaction as any transaction in which property is transferred to one. J benami property transactions act, 1988, as amended by benami transactions prohibition amendment act, 2016 hereinafter referred to as the act for brevity, anyproperty acquired byaperson inthe name ofabenamidar other than hisclose family members or infiduciary capacity, isliabletobeattached and subsequently.
Quick guide for benami property transaction prohibition. Be it enacted by parliament in the thirtyninth year of the republic of india as follows. Prohibition of benami property transaction act, 1988 is now substantially amended by benami transactions prohibition amendment act, 2016. Note on benami transactions prohibition act, 2016 general this note provides brief understanding of the proposed benami act text of the act is enclosed which has been approved on august 16, 2016 by the national assemblys standing committee on finance and has now been forwarded to the national assembly for its consideration.
Nov 09, 2016 the benami transactions prohibition amendment act 2016, which was passed by parliament in august this year, has come into effect. The prohibition of benami property transactions act, 1988 long title. Dec 06, 2016 one such serious and sound step is enactment of the benami transactions prohibition amendment act 2016. Benami transactions refer to those transactions in which the real beneficiary of the transaction and the person in whose name the transaction is made are different, specifically transactions relating to properties. The amendments aim to strengthen the bill in terms of legal and administrative procedure so as to overcome the practical difficulties which may arise in the implementation of the provisions of the bill when it becomes an act the legislation empowers the government to confiscate benami. The benami transactions prohibition amendment act, 2016. A a transaction or an arrangement a where a property is transferred to, or held by, a person, and the consideration for such property has been provided, or paid by, another. Benami law recent trends and impact on corporate structures. How new law changes the definition of benami assets. Aug 19, 2016 at present government is trying to curb foreign money through black money undisclosed foreign income and assets and imposition of tax act, 2015. Rigorous imprisonment for a period not less than 1 year but up to 7 years. Banking regulation act, 1949, applies and includes any bank or banking institution referred to in section 51 of that act. Know all about benami property act pdf pradhan mantri yojana.
Mar 17, 2010 benami transactions prohibition act, 1988. All you need to know about benami transactions bill the hindu. Benami is a hindi word meaning without name or nameless. Benami transactions prohibition amendment act is an important topic for the upsc civil services exam. The act consisted of only nine sections out of which sections 3, 4 and 5 are significant.
1517 43 81 413 613 435 457 1007 19 398 818 971 1037 965 468 1194 939 70 490 1407 246 445 590 851 778 307 1123 33 1041 456 429 716 774 553 365 1066 456 1100 37 767 1082 808 1213