Benami Transactions (Prohibition) Bill, Purpose: To prohibit holding property Benami and restrict the right to recover or transfer such property. THE BENAMI TRANSACTIONS (PROHIBITION) ACT, An Act to prohibit benami transactions and the right to recover properly held benami and for. Subsequently, in the year , a Bill called “The Benami Transactions ( Prohibition) Bill, ″, was introduced in the Parliament wherein.
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The Bill seeks to establish four authorities to conduct inquiries or investigations regarding benami transactions: In addition, any person who wilfully gives false information shall be liable to an imprisonment of three months to two years and a fine of up to 10 per cent of the market value beami the property.
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The Act provides for attachment and confiscation of benami property. Section 6 provides that benamidar shall not re-transfer the property to the beneficial owner or any other person acting on his behalf, meaning thereby that property cannot be transferred by the benamidar to the real owner or beneficiary.
Benami is a South Asian word that means “without name” or “no name”.
Definition of above mentioned terms provided in section 2 of the Act are relevant for the purpose of applicability and enforcement of provisions of the Act. He would also normally not acquire property in the name of father or mother unless there is intention to hide the real source of investment or to avoid tax on the income arising there from. Related Articles Lok Sabha passes Bill to check benami transactions. The Bill defines benami transaction as an arrangement where a property is held by a person other than in fiduciary capacity on behalf of another person who has paid for it; or b the transaction is made for a property in a fictitious name; or c the owner of the property is not aware of or denies knowledge of such ownership.
A question can be raised that if property can independently be acquired in the name of spouse or children, why there is a condition that property in the name of brother or sister or even in the name of father or mother can only be jointly with the individual providing the consideration and not singularly in their names.
The Initiating Officer shall within a period of 15 days from the date of his passing the necessary order for continuing the proceedings shall draw up a statement of facts and refer the matter to the Adjudicating Authority. Fill in your details: The Bill amends this definition to add other transactions which qualify as benami, such as property transactions where: Updated versions were therefore passed in andseeking to more comprehensively enforce the prohibitions.
Benami Transactions (Prohibition) Act, 1988
In case there is no mala fide intention of the individual in acquiring the property in the names of above-mentioned relations, then he can always trnasaction the amount paid by him for purchase of the property as gift to the person, namely, brother or sister or mother or father and in terms of provisions of section 56 2 vii of the Act, pohibition gift will also not be chargeable in their hands.
Judicial Member shall be a member of Indian Legal Service who holds the post of Additional Secretary or equivalent post.
With a view to have quick disposal of the matters it has also been provided that such courts shall make every endeavour to conclude the trial within a period of 6 months from the date of filing of the complaint. It also contains provisions regarding prosecution and has also provided for mechanism in regard to the relevant matters.
The Administrator shall have the power to receive and manage the property which has been confiscated. Sub-section 2 of section 24 also provides where a notice has been issued to the benamidar in respect of the property, a copy of same shall also transwction issued to the beneficial owner if his identity is known.
Please Email the Editor. In that situation property will not prohibituon held by them for benefit of the person providing consideration and, therefore, will be out of purview of “benami transactions” They will have full right to deal with the property in that case.
The Act also provided that all properties held benami shall be subject to acquisition by the Government. There are due checks provided in the form of prior approval of Approving Authority and for passing the order by the Adjudicating Authority. It is stated that provisions of the Act are quite stringent and any person who is involved in benami transaction or any person who abets or induces such transaction shall be liable for the prosecution.
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Once the order for confiscation has been passed and the rights and title in such property shall vest absolutely in the Central Government free of all encumbrances and no compensation shall be payable in respect of such confiscation.
The Adjudicating Officer, after hearing the person whose property is attached, may make an order for the confiscation of the property held blll.
All you need to know about benami transactions Bill
The aforesaid section empowers the Initiating Officer to issue a notice only if: It is well known that there is wide circulation of black money in the society. This page was last edited on 5 Novemberat August 02, Chairman of Appellate Tribunal shall be either a sitting or a retired judge of a High Court who has completed not less than five years of service.
It has, however, been provided that in case notice is served on any of the persons, service shall not be deemed to be invalid on the ground that such notice has not been served to all the persons holding the property.
International Business World News. In conclusion, it is stated that provisions of the Act appear to be quite effective for the purpose of checking the benami transactions and as a result thereof to check evasion of tax and black money circulation in the society.
Section 52 of the Act also provides for appeal to the High Court against the order passed by the special court. In case an appeal has been filed, the order of confiscation passed by the Adjudicating Authority shall be subject to the order of the Appellate Tribunal.
Scope of the Act Section 3 of the Act provides that no person shall enter into any benami transaction. It is hoped that machinery appointed under the Act shall also act reasonably while implementing the provisions of the Act. Inthe Law Commission of India after studying various Acts and prevailing benami system, recommended formulating an Act to tackle the issue. The obvious reason for above provision is that normally a person would acquire the property in the name of the spouse or in the name of the children out of his own funds, but he will never acquire the property independently in the name of brother or sister with his own money.
Section 51 of the Act provides for appointment of Public Prosecutor conducting the cases on behalf of the authorities. Sub-section 1 of section 24 reads as under: This will alert our moderators to take action Name Reason for reporting: NIFTY 50 10, 2.
Believe in that, do not believe that you are weak; do not believe that you are half-crazy lunatics, as most of us do nowadays.
New Benami law to allow property in spouse, siblings’ name – The Economic Times
Based on an order to confiscate the benami property, the Administrator will receive and manage the property in a manner and subject to conditions as prescribed. Provisions of the Act for discussion purpose can be categorised in following four heads as under: Benamu case the property is held jointly by more than one person, notice shall be issued to all persons holding the property.
Further, in order to safeguard the genuine transactions of purchase and sale of property an exception has also been provided that a transaction covered by section 53A of Transfer of Property Act will also not be deemed to be benami transaction in case full consideration for the same has been paid by the buyer to the seller and possession of the property has benai taken by the buyer and stamp duty on such transaction has also been paid and the contract has been registered though sale deed has not been executed and registered in favour of the buyer.
Background It is well known that there is wide circulation of black money in the society.