Jan 02, 2017 benami transactions prohibition act a study in comparison. Bill 2015 on th may 2015 president assent on 10 th august 2016 5 ca sagar tilak sagar. The benami transactions prohibition act, 2017 act no. The act defines a benami transaction as any transaction in which property is transferred to one person for consideration paid by another person. 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. Be it enacted by parliament in the sixtyseventh year of the republic of india as follows.
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. 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 amendment act brings within its purview several changes to the benami transactions prohibition act, 1988 1988 act. Benami transactions prohibition amendment act, 2016.
It states that any person entering into a benami transaction shall be liable for prosecution. Under the old benami law the government could only acquire the benami property for which a consideration had to be paid. Section 3 of the prohibition of benami property transactions act, 1988 states that no person shall enter into any benami transaction 2. The benami transactions prohibition amendment bill, 2015 a bill further to amend the benami transactions prohibition act, 1988. Black money law bml is a strong action, part of a strong multilateral attack on tax evasion as well as tax planning. The act prohibits benami transactions and provides for confiscating of benami properties. Group 8 benami transactions act ppt free download as powerpoint presentation. Act means the benami transactions prohibition act, 2017 v of chapter means a chapter of the act. 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. 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.
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 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. Key comparatives benamitransactions prohibition act 1988 amendedact 2016 9 sections 72 sections acquisition of property confiscation of property. Prohibition of benami property transactions rules, 2016. The act prohibits resale of the benami property from the benamidar to the real owner or to any person acting. B a transaction or an arrangement in respect of a property carried out or made in a fictitious name or. 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. 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. 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 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. 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. Black money law an analysis by ca rashmin chandulal sanghvi 15th august, 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. Any property, which is subject matter of benami transaction, shall. The act defines a benami transaction as any transaction in which property is transferred to one. The act amends the existing benami transactions prohibition act, 1988, and came into effect on november 1, 2016. These are the black money undisclosed foreign income and assets and imposition of tax act, 2015. In real estate, the financial transactions and black money is very rampant. Benami transaction the concept 2 ca sagar tilak sagar.
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. 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 benami transactions prohibition amendment act, 2016 came into effect from1st november, 2016. Mar 17, 2010 benami transactions prohibition act, 1988. 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. Dec 06, 2016 one such serious and sound step is enactment of the benami transactions prohibition amendment act 2016. Any property which is subject matter of benami transaction, shall be liable to be. The benami transactions prohibition amendment act, 2016, designed to curb black money and passed by parliament in august 2016, came into effect. 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 amendment bill, 2015 prevents all persons from entering into benami transactions.
In order to effectively prohibit benami transactions, the benami transactions prohibition amended act of 2016 came into operation after the amendment. What is benami transactions prohibition amendment act, 2016. Although the prohibition of benami property transactions act came into force in 2016, not many investorsproperty buyers understand its full implications. 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. 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. One such serious and sound step is enactment of the benami transactions prohibition amendment act 2016. The modified new legislation will be known as prohibition of benami property transactions act, 1988 pbpt act. Laws the benami transactions prohibition act section 4.
Prosecution provisions in respect of benami transaction entered into on or after 01. With this the government has tried to make two pronged attack. It is covered under the polity section of the ias exam. Benami law recent trends and impact on corporate structures. 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, 2015. The new law amended the benami transactions act, 1988 and renamed as the prohibition of benami property transactions pbpt act, 1988. 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. How new law changes the definition of benami assets.
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 aim of the benami transaction act is to prohibit benami transactions. Benami transactions prohibition act a study in comparison. However, this 1988 act, ie, the current act, hasnt had effective provisions and implementation. The ppt gives details about benami transaction prohibition act. Kan singh air 1980 sc 727, has explained benami property transaction as. Short title, extent and commencement 1 this act may be called the benami transactions prohibition act. Nov 09, 2016 the benami transactions prohibition amendment act 2016, which was passed by parliament in august this year, has come into effect. 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. Several benami transactions have been identified since the coming into effect of the amended law. The act consisted of only nine sections out of which sections 3, 4 and 5 are significant. Authorities, which have been specified, are empowered to attach. All you need to know about benami transactions bill the hindu. Iv2007bc459 the complaint could not have been thrown out at the threshold.
How benami law changes impact both old and new property. The bill was mainly the updated version of the benami transactions bill that was passed in. An act to prohibit benami transactions and the right to recover property held benami and for matters connected therewith or incidental thereto. 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. 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. The union cabinet has approved new amendments to the benami transactions prohibition amendment bill, 2015. Show cause notices for provisional attachment of benami properties have been issued in 140 cases involving properties of the value of about rs. The benami transactions prohibition amendment act, 2016. 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. 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 benami transactions prohibition amendment bill, 2015 was introduced in lok sabha on may, 2015. The actual beneficiary is the person financing the deal. The prohibition of benami property transactions act, 1988 long title. By clearing the 2015 amendment bill, the implementation of the provisions to control benami transaction is hoped to be achieved.
The benami transactions prohibition act property lawsin india at, a website for indian laws and bareacts, legal advice. An act further to amend the benami transactions prohibition act, 1988. The act prohibits benami transactions and provides for confiscating benami properties. Jul 21, 2016 the benami transactions prohibition amendment bill, 2015 was introduced in lok sabha on may, 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. The benami transactions prohibition amendment bill, 2015 was introduced in lok sabha on may, 2015 by the minister of finance mr. Benami transactions prohibition amendment act, 2016 mains. In addition to it, the benami bill is to curb domestic black money. 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. Benami transactions prohibition act, 1988 wikipedia. Be it enacted by parliament in the thirtyninth year of the republic of india as follows. 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. Evolution of concept of benami transaction in india. Benami transactions prohibition amendment act 2016 ias.
The bill seeks to amend the benami transactions prohibition act, 1988 to. Banking regulation act, 1949, applies and includes any bank or banking institution referred to in section 51 of that act. Be it enacted by parliament in the sixtysixth year of the republic of india as follows. Rigorous imprisonment for a period not less than 1 year but up to 7 years. Article deterrences of benami transaction prohibition amendment act, 2016, an evaluation dr. Guide to the prohibition of benami property transactions act. Benami transactions prohibition act section 4 judgments. 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. Reference was made to parliamentary committee for its recommendations on 15th may, 2015.
The benami transactions prohibition amendment bill, 2016 was introduced in lok sabha on th may, 2015. Implications of benami transactions prohibition amendment bill. The act prohibits benami transactions and provides for confiscating of. The act prohibits benami transactions and provides for. Law of the land the benami transactions prohibition. Benami transactions prohibition amendment bill, 2015. Apr 23, 2018 benami transaction prohibition act, 1988. The bill seeks to amend the benami transactions act, 1988. Key highlights of benami transactions prohibition amendment. Benami transactions bill,2015 daily current affairs.
Furthermore, there will be prohibition on the retransfer of benami property held by benamidar to the beneficial owner. 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 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 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. What is benami transactions prohibition amendment act. The paper thus seeks to analyse the meaning of benami transactions and what colour it has taken over these years. By clearing the 2015 amendment bill, the implementation of the provisions to control benami transaction is hoped to be achieved efficiently. Benami transactions prohibition act, 1988 is an act of the parliament of india that prohibits certain types of financial 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. Quick guide for benami property transaction prohibition. Nothing in the benami transactions prohobition act shall affect the provisions of sec.
1128 1220 286 1502 690 1023 370 454 1437 652 179 1492 371 687 393 1524 828 1588 588 1418 1597 1219 255 1520 464 446 790 1340 934 1166 528 472 1108 1201 1451 1388 846 1220