The benami transactions prohibition amendment act, 2016 came into effect from1st november, 2016. 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. 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. Benami transactions prohibition amendment bill, 2015. 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. However, the hammer of the law, if literally interpreted, also adversely affects innocent persons who enter into genuine transactions. 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. All you need to know about benami transactions bill the. The benami transactions prohibition amendment bill, 2015 a bill further to amend the benami transactions prohibition act, 1988. Jul 21, 2016 the benami transactions prohibition amendment bill, 2015 was introduced in lok sabha on may, 2015. The benami transactions prohibition amendment act, 2016, designed to curb black money and passed by parliament in august 2016, came into effect. Any property, which is subject matter of benami transaction, shall be liable to be confiscated by the federal. 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 act defines a benami transaction as any transaction in which property is transferred to one.
Nov 09, 2016 the benami transactions prohibition amendment act 2016, which was passed by parliament in august this year, has come into effect. Benami transaction prohibition act and its impact on law. Be it enacted by parliament in the sixtysixth year of the republic of india as follows. Income tax sleuths have started collecting details of benami transactions. The paper thus seeks to analyse the meaning of benami transactions. 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. Several benami transactions have been identified since the coming into effect of the amended law. Jul 28, 2016 the lok sabha has passed comprehensive benami transactions prohibition amendment bill, 2015 to curb domestic black money. 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. Aug 06, 2016 this 2011 bill, however, lapsed with the dissolution of the 15th lok sabha. For section 2 of the principal act, the following section. The paper thus seeks to analyse the meaning of benami transactions and what colour it has taken over these years. While the act provides for preventing and confiscating benami properties, the bill. A twominute guide to benami transactions prohibition amendment bill.
The benami transactions prohibition amendment bill, 2015. Group 8 benami transactions act ppt free download as powerpoint presentation. Rigorous imprisonment of up to 7 years for benami transactions. 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. Everything you need to know about benami act and how it can affect you. All you need to know about benami transactions amendment bill. The comprehensive amendment bill seeks to amend and strengthen benami transaction prohibition act, 1988 in terms of legal and administrative procedure. Analysis of new stringent law to prohibit benami transactions.
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. 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. 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. The bill seeks to amend the benami transactions prohibition act, 1988 to i amend the definition of benami transactions. 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. Any property, which is subject matter of benami transaction, shall. Interplay of laws dealing with economic offences wirc.
In real estate, the financial transactions and black money is very rampant. The benami transactions prohibition act, 2017 act no. Benami transaction bill is a big positive for real estate sector. 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. The systemic problems need to be addressed for re to stop being the epicenter of cash transaction and benami transactions. Benami property transactions and penalties for it bill. The act prohibits benami transactions and provides for confiscating benami properties. The ppt gives details about benami transaction prohibition act.
Curbing benami transactions the news international. Implications of benami transactions prohibition amendment bill. 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 act, 1988 is an act of the parliament of india that prohibits. 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. Benami transactions prohibition amendment bill, 2015 1 what is benami. Benami transactions bill,2015 daily current affairs. 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.
Benami transactions bill news and updates from the economictimes. The benami transactions prohibition amendment act came into force on 01. The benami transactions prohibition bill, 2015 introduce in lok sabha to. 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. By clearing the 2015 amendment bill, the implementation of the provisions to control benami transaction is hoped to be achieved efficiently. Any property which is subject matter of benami transaction. The new law amended the benami transactions act, 1988 and renamed as the prohibition of benami property transactions. The benami transactions prohibition act, 2016 national. Benami transactions news latest benami transactions news. However, the proposed bill of companies act, 2017, which has already been passed by the national assembly, also addresses. Senate passes bill to curb benami transactions pakistan. 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. 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.
The bill seeks to amend the benami transactions prohibition act, 1988 to. 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. 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. 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.
Law of the land the benami transactions prohibition. 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. 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. The benami transactions prohibition amendment act, 2016. The bill included an amendment to the definition of benami transactions, establish authorities to deal with benami transactions and specify penalties for such transactions. Benami transactions prohibition amendment act 2016 ias. The benami transactions prohibition amendment bill, 2015 14 the benami transactions prohibition amendment bill, 2015. Benami transactions is commonly accepted in india is that where a person buys property. The benami transactions prohibition amendment act 2016 imposes draconian consequences on persons seeking to evade the law by holding property by illegitimate means. 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. Benami transactions bill news and updates from the.
We use your linkedin profile and activity data to personalize ads and to show you more relevant ads. 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. The amendment bill, 2015 was first introduced in the lok sabha. Trending the bill was introduced in lok sabha on may, 2015.
Nov 18, 2016 benami transactions are those transactions which takes place to hide black money in form of purchasing property house,plot and land. The lok sabha has passed comprehensive benami transactions prohibition amendment bill, 2015 to curb domestic black money. 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. 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 act defines a benami transaction as any transaction. 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. As a result, the person in whose name the property is purchased is just a mask of the real beneficiary. Guide to the prohibition of benami property transactions act. 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. Income tax sleuths have started collecting details of benami transactions and properties as a preclude to crackdown on black. Benami transactions are those transactions which takes place to hide black money in form of purchasing property house,plot and land. Implication of benami transaction bill iref indian real.
Download department of investment and public asset management. 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. The benami transactions prohibition amendment bill, 2015 was introduced in lok sabha on may, 2015 by the minister of finance mr. Amendment bill in may 2015 and, after passage in parliament, it came into effect from 1 november 2016. The benami transactions prohibition amendment act, 2016 is an amendment of the older benami transactions prohibition act 1988. The benami transaction prohibition act was first enacted in 1988 but has not been notified due to some infirmities. Acquisition of a property in the name of a person other then the one paying the consideration thereof may result into a benami transaction. 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. The act prohibits benami transactions and provides for confiscating 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.
Benami transactions to defraud the government scholarticles. Any property which is subject matter of benami transaction, shall be liable to be. It is covered under the polity section of the ias exam. 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. The benami transactions prohibition amendment bill, 2015 was introduced in lok sabha on may, last year by finance minister arun jaitley. Propguide takes a look at how this will impact the real estate sector. The union cabinet has approved new amendments to the benami transactions prohibition amendment bill, 2015. 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. 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. 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. Benami transactions bill news and updates from the economic.
The bill seeks to amend the benami transactions act, 1988. Jul 30, 2016 the benami transactions prohibitionamendment bill, 2015, interalia, provides for the following namely. Benami transactions means a have black money and he wants to hide black money so he will purchase any propert. A study of the benami transactions prohibition amendment. The amended act of 2015, widens the definition of benami transactions. Benami transactions prohibition amendment act, 2016. The person fronti ng the transaction may be paid a fee or some share. The real estate bill which regulates the market and with this benami transactions prohibition bill.
Rigorous imprisonment of up to 7 years for benami transactions 16 aug, 2016, 09. A lot of times to avoid tax, a property could be obta ined in someones elses name. Evolution of concept of benami transaction in india. Benami transactions prohibition act, 1988 wikipedia. The benami transactions prohibition amendment bill, 2015 was introduced in lok sabha on may, 2015. 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. Benami transactions prohibition amendment act is an important topic for the upsc civil services exam. A shoutout to the taxcompliant vsv is expected to resolve a major part of direct tax litigations worth about rs 4. All you need to know about benami transactions bill the hindu. 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.
T he person putting in the money is actually the one controlli ng the ownership and or the transaction. Journey of the law on prohibition 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. Thus came in picture the benami transaction prohibition amendment bill, 2015 which was recently cleared by the cabinet. Show cause notices for provisional attachment of benami. The rajya sabha had on august 2 passed the benami transactions prohibition amendment bill, 2015, which seeks to amend the benami transactions act, 1988. Benami transactions bill guide to taxation and legal.