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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From Wikipedia, the free encyclopedia. Retrieved 26 July Mr A only agrees to hold the property for Mr B. In this Act, the word is used to define a transaction in which the real beneficiary is not the one in whose name the property is purchased.
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This enables the payer to achieve undesirable purposes such as utilizing black money, evading the payment of tax and avoiding making payments to creditors. It also states that properties held benami are liable for confiscation by the government without payment of compensation.
Beneficial owner, Benamidar Any other person who abets or induces any person to enter into benami transaction The offences are non-cognizable and non-bailable. In an attempt to curb black money, in JulyModi government decided to amend the original act  which was subsequently passed by the Parliament of India as “The Benami Transactions Prohibition Amendment Act, “.
Benami Transactions (Prohibition) Act – A Study in Comparison
The income-tax department on Friday notified the provisions of the Benami Act with effect from 1 November, reinforcing the fight against tax evasion. Why tax liquidated damages? 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.
The act bans all benami transactions and gives the government the right to recover property held benami without paying any compensation. The Amendment Act provides wide powers to the tarnsaction in relation to calling for information from, and impounding records of, any person including from any officer of the Government. 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.
The Amendment Act specifies the following cases which are exempted from the scope of the definition of a benami transaction.
Benami Transactions (Prohibition) Act, 1988
Inthe Law Commission of India after studying various Acts and prevailing benami system, recommended formulating an Act to tackle the issue. Retrieved 28 October 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, Unlawful Activities Prevention Act.
The benami properties attached include deposits in bank accounts and immovable properties. The Amendment Act increases the scope of transactions which qualify as benami and includes property transactions where: 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.
Prohibjtion Rules of the Primary Act were not framed and proyibition transactions continued in India. The Act also has safeguard mechanisms such as the adjudicating authority and the appellate mechanism for appeals. Crude oil prices to direct sugar prices in More from this Author. In force Benami Transactions Prohibition Act, is an Act of the Parliament of India that prohibits certain types of financial transactions. In addition, the Amendment Act prescribes rigorous punishment by imprisonment and fine for furnishing false information to any of the authorities under the Amendment Act.
Adjudicating Authority to hear affected persons and pass order holding that property is benami or not. Section 19 empowers any authority constituted under the Amendment Act to require any police officer, officer of the Central or State Government for conducting benamk under the Act.
Further, vide Notification No.
Benami Property Transactions Act, – Meaning & Provisions
This serves as an indication of the intention of the legislature to give more teeth to the erstwhile Act since no such distinct authority had been constituted under the Act which had the authority to seize and acquire benami property as provided under Section 5 of the Act.
The authority will decide qct a year if the property is benami.
188 provisional attachment or ordering provisional attachment where not satisfied that property is not benami and refer a statement of case to Adjudicating Authority. Get done in 7 mins.
In cases where the price is benxmi ascertainable, another procedure will be prescribed. Upon passing of the order, the Initiating Officer shall refer the same to the Adjudicating Authority for hearing and orders.
The Act establishes four authorities who will be able to conduct inquiries regarding benami transactions:. Any property, whether movable or immovable, tangible or intangible, which has been the subject matter of a Benami transaction, tranzaction a Benami property.
Though the Benami Transactions Prohibition Act, has been on the statute book since more than 28 years, the same could not be made operational because of certain inherent defects.
Invest in best performing Mutual funds for building long term wealth. FREE software to e-file tax return of your clients. The Act is necessary to reduce generation and utilization of unaccounted black money. The Act establishes four authorities who will be able to conduct inquiries regarding benami transactions: Moreover, this will also increase the tax revenue for the Government by curbing unaccounted money into the system.
However, it is Mr B who actually pays for the same.