This video by explains what is benami property act 2017 in hindi. The act also does not apply to a fraudulent transfer covered by section 53 of the transfer of property act, 1882. The pbpt act defines benami transactions, prohibits them and further provides that violation of the pbpt act is punishable with imprisonment and fine. Know all about benami property act pdf pradhan mantri yojana. One such serious and sound step is enactment of the benami transactions prohibition amendment act 2016. However, the hammer of the law, if literally interpreted, also adversely affects innocent persons who enter into genuine transactions. Daniel has conducted a systematic study of the prohibition of benami property transactions act, 1988 as amended in 2016.
The delhi high court has asked the income tax department to clarify, whether the new prohibition of benami property transactions act, would be applied with retrospective effect, on cases before 2016, when the act came into effect. Benami transactions prohibition act section 4 judgments. Chapter 1 section 1 short title, extent and commencement. The person who finances the deal is the real owner. Section 4 prohibition of the right to recover property held benami. Benami transactions prohibition amendment act is an important topic for the upsc civil services exam.
It is covered under the polity section of the ias exam. So after further amendment, benami transactions prohibition amendment act, 2016 came into force on november 1, 2016. Then the defendant in such a suit being the real owner takes the defence that the plaintiff is the benami owner or benamidar of the suit property and that the defendant is the real owner because the consideration for the suit property had passed through him, then in such a case after the passing of this act, section 42 of the act comes into. The income tax department never asks for your pin numbers, passwords or similar access information for credit cards, banks or other financial accounts through email the income tax department appeals to taxpayers not to respond to such emails and not to share information relating to their credit card, bank and other financial accounts. Benami property transactions act, has been amended by the benami transactions prohibition amendment act, btp amendment. The benami transactions prohibition amendment act 2016, which was passed by parliament in august this year, has come into effect. Even though a benami property is purchased on the name of someone else, the person who finances the deal is the real owner. Definition of benami transaction is explained in section 2 of prohibition of benami property transaction act. The benami transactions prohibition act, 1988 has been amended by the benami transactions prohibition amendment act, 2016, which came into force from 1 st. Benami transactions prohibition amendment act, 2016. The prohibition of benami property transactions rules, 2016 have been framed in this regard. We may also refer to provision relevant to benami transfers in the transfer of property act.
Click download or read online button to get the benami transactions prohibition act 1988 book now. All you need to know about benami transactions bill the. The act consisted of only nine sections out of which sections 3, 4 and 5 are significant. Complete prohibition of benami property transactions act. He is the person who receives the income for his own use and enjoyment and assumes the risk and control, i. Benami transactions act 1988 partly prospective, partly. The amendment act, unlike the 1988 act, provides certain exceptions to the definition of benami transactions under section 29 and in this regard, property held by the following categories of.
Know all about benami property and benami transactions. Prohibition of benami property transactions act, 1988. Laws related to benami property in india enterslice. An act further to amend the benami transactions prohibition act, be it enacted by parliament in the sixtyseventh year of the republic. To curb black money, the modi government in july 2016 decided to amend the original act. The assessee is entitled only to claim interest paid as part of the sa. When a property is purchased in the name of a person who does not pay for it, generally, such transactions, subject to certain exceptions, are treated as benami transactions under the. As per the benami transactions prohibition act, 1988, a benami transaction is wherein any property is transferred to one person for a consideration provided or paid by another person. The law of estoppel is enacted in section 115 of the indian evidence act, and the leading case on that section falls equally under this provision of the transfer of property act. Complete prohibition of benami property transactions act with list of chapters and sections. This site is like a library, use search box in the widget to get ebook that you want. After coming into effect of the btp amendment act, the existing benami transactions prohibition act, 1988 shall be renamed as prohibition of benami property transactions act, 1988 pbpt act. The person in whose name this type of property is bought is called, benamdar and the property so purchased is called the benami property. This being a legal requirement, the act has not become very effective in curbing or prohibiting benami transactions or punishing the persons involved.
Taxes and penalties on benami properties housing news. Apart from referring to all the important statury provisions and judicial pronouncements on the subject, the author has answered faqs which throw light on the precise legal consequences of the enactment. Group 8 benami transactions act ppt free download as powerpoint presentation. 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 adt cause as to why a property should not be treated as a benami property, thus opening a scope for trial. The act defines a benami transaction as a transaction where. An act further to amend the benami transactions prohibition act, 1988. A significant part of this is held in benami, though no estimates are available, not even approximate.
Prohibition of benami property transactions rules, 2016. 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. What is benami transactions prohibition amendment act. The modified new legislation will be known as prohibition of benami property transactions act, 1988 pbpt act. Confiscation of benami property section 27 1 where an order is passed in respect of any property under sub section 3 of section 26 holding such property as benami property, the adjudicating authority shall after giving opportunity of being heard, make an order confiscating the property held to be benami property.
This is a serious restriction in the application of the act. Benami transactions prohibition amendment act 2016 ias. Updated versions were therefore passed in 2011 and 2016, seeking to more comprehensively enforce the prohibitions. Provision and issues relating to taxes on income referred to in section 68 to 69d. 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. Although benami transactions are now illegal, the act had limited success in curbing them. The amendment act, unlike the 1988 act, provides certain exceptions to the definition of benami transactions under section 29 and in this regard, property held by the following categories of persons have been exempted from the purview of benami transactions, thus providing legitimate relaxations to certain types of transactions. The benami transactions prohibition amendment act, 2016, designed to curb black money and passed by parliament in august 2016, came into effect. Be it enacted by parliament in the sixtyseventh year of the republic of india as follows. 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.
Now, with the passing of the benami transactions prohibitions amendment act, 2016, an effective law has been put in place, to deal with benami properties. 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. After coming into effect, the existing benami transactions prohibition act, 1988, shall be renamed as the prohibition of benami property transactions act, 1988, a cbdt statement said. The benami transactions prohibition amendment act 2016 imposes draconian consequences on persons seeking to evade the law by holding property by illegitimate means. The benami transactions prohibition act 1988 download. 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. Deduction us 54f delay in delivery of possession of the property. Benami property act to be effective from november 1, 2016. Short title, extent and commencement 1 this act may be called the benami transactions prohibition act, 1988. The first act against benami properties ws passed in 1988 as the prohibition of benami property transactions act, 1988. It empowers provisional attachment and subsequent confiscation of benami properties. As per the act, benami property includes movable or immovable property, tangible or intangible property, corporeal or incorporeal property. Chapter ii section 3 prohibition of benami transactions. A study of the benami transactions prohibition amendment.
Major changes the parliament enacted prohibition act, 1988 prohibiting benami transactions under section 31, and making them punishable under. Benami property as per act means 8 benami property means any property which is the subject matter of a benami transaction and also includes the proceeds from such property. How new law changes the definition of benami assets. Benami property transactions act in simple language. Even if a benami property is converted into other forms, the proceeds are considered benami property. Guide to the prohibition of benami property transactions act. The act amends the existing benami transactions prohibition act, 1988, and came into effect on november 1, 2016.
The person on whose name the property has been purchased is called the benamdar and the property so purchased is called the benami property. Girish ahuja discusses the provisions and penalties under the benami property act. Legislation on benami transactions in india a critical study. The ppt gives details about benami transaction prohibition act. The act defines 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 amendment act, 2016. 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.
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. Revision us 263 the words as he deems necessary, in our view, do. Furthermore, there will be prohibition on the retransfer of benami property held by benamidar to the beneficial owner. The act goes on to ban all benami transactions and the right to recover property held benami.
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