The benami transactions prohibition amendment act, 2016 came into effect from1st november, 2016. The amended act of 2015, widens the definition of benami transactions. 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. Benami transactions bill,2015 daily current affairs. Thus came in picture the benami transaction prohibition amendment bill, 2015 which was recently cleared by the cabinet. Dec 26, 2016 as with all other regulations, such as the real estate regulation and development act and the land acquisition rehabilitation and resettlement amendment bill 2015, the benami transactions act is also aimed at increasing transparency and professionalism in the industry. Bill, 2015 the benami transactions prohibition amendment bill, 2015 was introduced in lok sabha on may, 2015 by the minister of finance mr. On th may, 2015 the benami transactions prohibition amendment bill, 2015 hereinafter referred as the amendment bill, 2015 was introduced in lok sabha in order to amend and incorporate certain very important provisions of the act, e. Jun 12, 2017 a major step towards eradicating black money, a benami property bill was introduced in lok sabha in may 2015 which sought an amendment to benami transaction act, 1988. 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. Implication of benami transaction bill iref indian real. The benami transactions prohibition amendment act came into force on 01. All you need to know about benami transactions amendment bill.
Nov 09, 2016 the benami transactions prohibition amendment act 2016, which was passed by parliament in august this year, has come into effect. By clearing the 2015 amendment bill, the implementation of the provisions to control benami transaction is hoped to be achieved efficiently. The benami transactions prohibition amendment bill, 2015 was introduced in lok sabha on may, last year by finance minister arun jaitley. While the act provides for preventing and confiscating benami properties, the bill. Business law from nujs, kolkata, talks about the law related to benami property in india. 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. As a result, the person in whose name the property is purchased is just a mask of the real beneficiary.
Benami transactions prohibition act, 1988 is an act of the parliament of india that prohibits. The benami transactions prohibition amendment act, 2016 is an amendment of the older benami transactions prohibition act 1988. The act defines a benami transaction as any transaction. The ppt gives details about benami transaction prohibition act. Benami transactions are those transactions which takes place to hide black money in form of purchasing property house,plot and land. However, the hammer of the law, if literally interpreted, also adversely affects innocent persons who enter into genuine transactions. Benami transactions prohibition amendment act is an important topic for the upsc civil services exam. Income tax sleuths have started collecting details of benami transactions and properties as a preclude to crackdown on black.
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. Benami transactions means a have black money and he wants to hide black money so he will purchase any propert. The comprehensive amendment bill seeks to amend and strengthen benami transaction. Benami transactions bill news and updates from the economic. Show cause notices for provisional attachment of benami. Be it enacted by parliament in the sixtysixth year of the republic of india as follows. The person fronti ng the transaction may be paid a fee or some share. All you need to know about benami transactions bill the. Benami transactions news latest benami transactions news. Benami transactions prohibition amendment bill, 2015. Any property, which is subject matter of benami transaction, shall be liable to be confiscated by the federal.
In this bill, the word is used to define a transaction in which the real beneficiary is not the one in whose name a property has been. Dec 10, 2011 benami transactions jeni varghese patents dept. It is covered under the polity section of the ias exam. Fm jaitley warns black money holders not to miss september 30 deadline jaitley was replying to a debate on benami transactions prohibition amendment bill, 2016. The benami transactions prohibition amendment bill, 2015 was introduced in lok sabha on may, 2015. Everything you need to know about benami act and how it can affect you. Benami transactions is commonly accepted in india is that where a person buys property. Aug 06, 2016 this 2011 bill, however, lapsed with the dissolution of the 15th lok sabha. Benami transactions prohibition amendment act, 2016. Income tax sleuths have started collecting details of benami transactions. Benami transactions bill guide to taxation and legal. Propguide takes a look at how this will impact the real estate sector. Trending the bill was introduced in lok sabha on may, 2015. On th may, 2015 the benami transactions prohibition amendment bill, 2015 hereinafter referred as the amendment bill, 2015 was introduced in lok sabha in order to amend and incorporate certain very important provisions of the act, i.
In this bill, the word is used to define a transaction in which the real beneficiary is not the one in whose name a property has been purchased. The amendment bill received the presidential assent on august 10, 2016 and the benami transactions prohibition amendment act, 2016 hereinafter referred as the amendment act, 2016 was. Sep 27, 2016 on th may, 2015 the benami transactions prohibition amendment bill, 2015 hereinafter referred as the amendment bill, 2015 was introduced in lok sabha in order to amend and incorporate certain very important provisions of the act, e. A study of the benami transactions prohibition amendment. The bill included an amendment to the definition of benami transactions, establish authorities to deal with benami transactions and specify penalties for such transactions. Any property, which is subject matter of benami transaction, shall. The benami transactions prohibition act, 2016 national.
The act which was passed in 1988, defined a benami transaction as a transaction where a property is held by or transferred to a person, but has been provided for or paid by another person. The benami transactions prohibition bill, 2015 introduce in lok sabha to. Aug 26, 2016 the benami transactions prohibition amendment bill, 2015 was introduced in lok sabha and the bill seeks to amend the benami transactions act, 198 which prohibits benami transactions and allows confiscation of benami properties. Jul 28, 2016 the lok sabha has passed comprehensive benami transactions prohibition amendment bill, 2015 to curb domestic black money. Ministry of finance department of revenue the benami transactions prohibition amendment bill, 2015 presented to lok sabha on 28 april, 2016 laid in rajya sabha on 28 april. 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 rajya sabha had on august 2 passed the benami transactions prohibition amendment bill, 2015, which seeks to amend the benami transactions act, 1988. Jan 18, 2017 under section 511 of the bill, where any person enters into a benami transaction or holds benami property in order to defeat the provisions of any law or to avoid payment of statutory dues or to. The benami transactions prohibition amendment bill, 2015 introduced in lok sabha on may, 2015, was referred to the committee on 15 may, 2015 for examination and report thereon, by the speaker, lok sabha under rule 331e of the rules of procedure and conduct of. A new benami transactions prohibition bill to replace the 1988 act was introduced in 2011, but it. Guide to the prohibition of benami property transactions. Benami transactions prohibition amendment act 2016 ias. The benami transactions prohibition amendment act, 2016.
In real estate, the financial transactions and black money is very rampant. T he person putting in the money is actually the one controlli ng the ownership and or the transaction. The bill intends to amend the definition of benami transactions and establish adjudicating authorities besides. The comprehensive amendment bill seeks to amend and strengthen benami transaction prohibition act, 1988 in terms of legal and administrative procedure. Evolution of concept of benami transaction in india. Benami property transactions and penalties for it bill. 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.
Jul 30, 2016 the benami transactions prohibitionamendment bill, 2015, interalia, provides for the following namely. A shoutout to the taxcompliant vsv is expected to resolve a major part of direct tax litigations worth about rs 4. The aim of the paper is to understand position of law regarding section 41 and 53 of transfer of property act, 1882, what is the difference in these sections and benami transaction as envisaged by benami transaction prohibition act, 1988 and also deeply analyze provisions of benami transaction prohibition bill, 2015. As per the bill, the penalty for providing false information to be rigorous imprisonment of six months up to five years, and a fine which may extend to 10% of the fair market value of the benami. The amendment bill, 2015 was first introduced in the lok sabha. Rigorous imprisonment of up to 7 years for benami transactions. Aug 12, 2016 the aim of the paper is to understand position of law regarding section 41 and 53 of transfer of property act, 1882, what is the difference in these sections and benami transaction as envisaged by benami transaction prohibition act, 1988 and also deeply analyze provisions of benami transaction prohibition bill, 2015. The benami transactions prohibition amendment bill, 2015 a bill further to amend the benami transactions prohibition act, 1988.
The benami transactions prohibition amendment bill, 2015. A twominute guide to benami transactions prohibition. Apr 23, 2018 on th may, 2015 the benami transactions prohibition amendment bill, 2015 hereinafter referred as the amendment bill, 2015 was introduced in lok sabha in order to amend and incorporate certain very important provisions of the act, i. Jul 21, 2016 the benami transactions prohibition amendment bill, 2015 was introduced in lok sabha on may, 2015. The benami transactions prohibition amendment bill, 2015 was introduced in lok sabha on may, 2015 by the minister of finance mr.
Any property which is subject matter of benami transaction, shall be liable to be. The systemic problems need to be addressed for re to stop being the epicenter of cash transaction and benami transactions. The paper thus seeks to analyse the meaning of benami transactions and what colour it has taken over these years. Analysis of new stringent law to prohibit benami transactions. Rigorous imprisonment of up to 7 years for benami transactions 16 aug, 2016, 09. Benami transaction bill is a big positive for real estate sector. The act defines a benami transaction as any transaction in which property is transferred to one. Benami transactions bill news and updates from the. The benami transaction prohibition act was first enacted in 1988 but has not been notified due to some infirmities. The act prohibits benami transactions and provides for confiscating benami. Implications of benami transactions prohibition amendment bill. For section 2 of the principal act, the following section. Under section 511 of the bill, where any person enters into a benami transaction or holds benami property in order to defeat the provisions of any law or to avoid payment of statutory dues or. Nov 18, 2016 benami transactions are those transactions which takes place to hide black money in form of purchasing property house,plot and land.
Curbing benami transactions the news international. The recently cleared amendment to benami transaction prohibition amendment act, 2016 indicates the resolve of the government of india to control the menace of black money and its byproduct benami transactions with the new stringent law and its effective implementation. The bill seeks to amend the benami transactions act, 1988. Benami transactions prohibition act, 1988 wikipedia. If actslaw could make india law abiding,then by this timethere should be no black money,no corruption,no crime. Any property, which is subject matter of benami transaction. The union cabinet has approved new amendments to the benami transactions prohibition amendment bill, 2015. Interplay of laws dealing with economic offences wirc. The benami transactions prohibition amendment act 2016 imposes draconian consequences on persons seeking to evade the law by holding property by illegitimate means.
The new law amended the benami transactions act, 1988 and renamed as the prohibition of benami property transactions. 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 paper thus seeks to analyse the meaning of benami transactions. 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.
A lot of times to avoid tax, a property could be obta ined in someones elses name. The real estate bill which regulates the market and with this benami transactions prohibition bill. Benami transactions to defraud the government scholarticles. Benami transactions prohibition amendment bill, 2015 1 what is benami. Bill summary the benami transactions prohibition amendment bill, 2015 the benami transactions prohibition amendment bill, 2015 was introduced in lok sabha on may, 2015 by the minister of finance mr.
The bill seeks to amend the benami transactions prohibition act, 1988 to i amend the definition of benami transactions. Download department of investment and public asset management. The benami transactions prohibition act, 2017 act no. People generally ask whether he or she can purchase a property in the name of a person who may be a relative, friend or an employee etc. Benami transaction prohibition act and its impact on law. 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.
The benami transactions prohibition amendment bill, 2015 14 the benami transactions prohibition amendment bill, 2015. 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. Group 8 benami transactions act ppt free download as powerpoint presentation. Several benami transactions have been identified since the coming into effect of the amended law. Jan 27, 2017 the benami transactions prohibition amendment bill, 2015 was introduced in the lok sabha on may, 2015 to amend the benami transactions act of 1988. The benami transactions prohibition amendment act, 2016, designed to curb black money and passed by parliament in august 2016, came into effect. Acquisition of a property in the name of a person other then the one paying the consideration thereof may result into a benami transaction. The act prohibits benami transactions and provides for confiscating benami properties. Any property which is subject matter of benami transaction. Guide to the prohibition of benami property transactions act. Law of the land the benami transactions prohibition. This new bill has been framed after the keeping in mind the recommendations of the standing committee, and is much more comprehensive than the 2011.
The benami transactions prohibition amendment bill, 2015 prevents all persons from entering into benami transactions. Business law from nujs, kolkata, talks about the law related to benami property in india the benami transactions prohibition amendment act came into force on 01. We use your linkedin profile and activity data to personalize ads and to show you more relevant ads. Senate passes bill to curb benami transactions pakistan. It means a property is held by a person on behalf of another person who has paid for it or b the transaction is made for a property in a fictitious name. The lok sabha has passed comprehensive benami transactions prohibition amendment bill, 2015 to curb domestic black money. A twominute guide to benami transactions prohibition amendment bill. Sep 14, 2015 the benami transactions prohibition amendment bill, currently pending before parliament, seeks to effectively ban benami deals, reportedly a major source of generating black money in the real. 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.
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