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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Updated versions were therefore passed in andseeking to more comprehensively enforce the prohibitions.
The act defines a ‘benami’ transaction as any transaction in which property is transferred to one person for consideration paid by another person. Real Estate Sector in India is one of the few sectors that have witnessed exponential growth in the last two decades.
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So if a new Act was passed inall those who acquired benami properties before would be given immunity. Click here to register your Interest. Invest in best performing Mutual funds for building long term wealth.
This page was last edited benaml 5 Novemberat Section 20 of the Amendment Act mandates any officer of the Income Tax Authorities, Customs and Excise Department, Narcotics Control Bureau, Reserve Bank of India and banking companies, Securities and Exchange Board of India and the stock exchange, Enforcement Directorate, any body-corporate constituted under any State or Central Act, and local authorities to assist the above-mentioned authorities in the enforcement of the Amendment Act.
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. Property Hotline – Your Queries Answered!! Show cause notices for provisional attachment of benami properties have been issued in cases involving properties of the value of about Rs.
The Amendment Act also deems every proceeding instituted by any of aact authorities involving discovery, inspection, summons, etc.
Benami Transactions – Law In India. The content of this article is intended to provide a general guide to the subject matter.
Benami Transactions (Prohibition) Act, 1988
Interested in the next Webinar on this Topic? The Act defined a ‘benami transaction’ as “any transaction in which property is transferred to one person for a consideration paid or provided by another person”. The Act establishes four authorities who will be able to conduct inquiries regarding benami transactions: Views Read Edit View history.
Appeals against orders of the Appellate Tribunal will be to the respective High Court with jurisdiction. The authority will decide within a year if the property is benami. This Act consisted of only eight sections.
In light of the above, Chapter III of the Amendment Act seeks to remove the lacunae of the Act and provide more clarity on the aforesaid issue. Moreover, this will also increase the tax revenue for the Government by curbing unaccounted money into the system.
More from this Firm. 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. Retrieved from ” https: The Amendment Act increases the scope of transactions which qualify as benami and includes property transactions where:.
In force Benami Transactions Prohibition Act, is an Act of the Parliament of India that prohibits certain types of financial transactions. Share Facebook Twitter Linked In. 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.
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, 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.
The Benami Transactions Prohibition Amendment Act, ‘Amendment Act’ seeks to amend the Primary Act and is aimed at catching those with black money in the domestic economy hidden through benami properties. This would also include the consideration received from such property.
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Benami Transactions (Prohibition) Act – A Study in Comparison – Lexology
SO E, dated Pronibition of these, provisional attachment has already been effected in cases. Benami transactions also include transactions carried out in fictitious names or where the person providing the consideration is not traceable. This may not be feasible given the recent crackdown on licenses granted by the Government of India under the Foreign Contribution Regulation Act, and the stringent views taken in relation to such not-for-profit organizations. This Act, along with the stringent Black Money Undisclosed Foreign Income and Assets and Imposition of Tax Act,to penalize those with unaccounted wealth abroad, will help the government in its fight against black money both within and outside the country.
Provisional attachment of property if necessary. Log In Sign Up. Your LinkedIn Connections at Firm. Benami is a South Asian word that means “without name” or “no name”.
Kan Singh AIR SCexplained Benami Trransaction as “Where a person buys a property with his own money but in the name of another person without any intention to benefit bfnami other person, the transaction is called benami.
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. Benami Transacfion Prohibition Act, is an Act of the Parliament of India that prohibits certain types of financial transactions.
Where adjudication order holds property as benami, hear affected persons and pass confiscation order.