The benami transaction prohibition act was first enacted in 1988 but has not been notified due to some infirmities. However, thereafter, benami transactions prohibition bill, 1988 was introduced in the rajya sabha on 31 st august, 1988 and received the assent of the president on 5 th day of september, 1988, which had much to the disappointment of those advocating strong law against benami transactions. Benami transactions news latest benami transactions news. Evolution of concept of benami transaction in india. The benami transactions prohibition amendment act, 2016hereinafter referred to as the act received the presidents assent on august 10, 2016 and has come into force from november 1. 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. View benamitransactionsprohibitionamendmentactof2016. Rigorous imprisonment of up to 7 years for benami transactions 16 aug, 2016, 09.
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. 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. Rigorous imprisonment of up to 7 years for 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. Benami transactions prohibition act, 1988 wikipedia. The bill seeks to amend the benami transactions act, 1988. The benami transactions prohibition amendment act, 2016. The union cabinet has approved new amendments to the benami transactions prohibition amendment bill, 2015. The benami transactions prohibition amendment act, 2016 has.
Benami transactions prohibition amendment bill, 2015 1 what is benami. 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. It is covered under the polity section of the ias exam. A study of the benami transactions prohibition amendment. Increased transparency to boost buyers confidence the bill will bring in muchneeded cleansing in the real estate sector. 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. By clearing the 2015 amendment bill, the implementation of the provisions to control benami transaction is hoped to be achieved efficiently.
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. From the old concept to the new bill benami 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. Senate passes bill to curb benami transactions pakistan.
The bill seeks to amend the benami transactions prohibition act, 1988 to. Benami transactions tracing the evolution of benami law in. The bill seeks to amend the benami transactions prohibition act, 1988 to i amend the definition of benami transactions, ii establish adjudicating authorities and. 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. Trending the bill was introduced in lok sabha on may, 2015. Will it reduce black money transactions in real estate. With a view to providing effective regime for prohibition of benami transactions, the said act was amended through the benami transactions prohibition amended act, 2016. The benami transactions prohibition amendment bill, 2015 was introduced in lok sabha on may, 2015. The benami transaction prohibition amendment bill, 2015 was introduced before the parliament by the nda government in july 2016. The benami transactions prohibition amendment bill, 2015 was introduced in lok sabha on may, 2015 by the minister of finance mr. The benami transactions prohibition amendment bill, 2015. By clearing the 2015 amendment bill, the implementation of the.
To study about the uplifted prohibition act on benami transaction. The act defines a benami transaction as any transaction in which property is transferred to one person for consideration paid by another person. The act prohibits benami transactions and provides for confiscating benami properties. 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. Benami transactions prohibition amendment act is an important topic for the upsc civil services exam. Benami transactions prohibition amendment bill, 2015. A shoutout to the taxcompliant vsv is expected to resolve a major part of direct tax litigations worth about rs 4.
The benami transactions prohibition amendment bill, 2015 prevents all persons from entering into benami transactions. While the act provides for preventing and confiscating benami properties, the bill. 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. All about benami properties and recent legal developments. An act further to amend the benami transactions prohibition act, 1988. Will the benami transactions prohibition amendment bill 2015, make property titles in the real estate sector more transparent by curtailing black money transactions.
Amendment act, 2016, implementation of the direct tax. Prior to 1988, benami transactions were a part of indian law. As a result, the person in whose name the property is purchased is just a mask of the real beneficiary. The benami transactions prohibition amendment act, 2016, designed to curb black money and passed by parliament in august 2016, came into effect.
The lok sabha has passed comprehensive benami transactions prohibition amendment bill, 2015 to curb domestic black money. The comprehensive amendment bill seeks to amend and strengthen benami transaction prohibition act, 1988 in terms of. All you need to know about benami transactions bill the. 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, 2016 lok sabha secretariat new delhi april, 2016 chaitra, 1938 saka. 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. 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 benami transactions prohibition act 2017 enables relevant. Any property, which is subject matter of benami transaction, shall. Be it enacted by parliament in the sixtyseventh year of the republic of india as follows. 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. Bill, 2015 the benami transactions prohibition amendment bill, 2015 was introduced in lok sabha on may, 2015 by the minister of finance mr. 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. After getting passed in both the houses of the parliament, the bill got converted into an act on 11 th august 2016 and was enforced on 1 st november 2016.
Benami transactions prohibition amendment act of 2016. As a result, the person in whose name the property is purchased is. Any property which is subject matter of benami transaction. The benami transactions prohibition amendment bill, 2015 14 the benami transactions prohibition amendment bill, 2015 cleared by cabinat. Group 8 benami transactions act ppt free download as powerpoint presentation. Provision for tax benefits to sovereign gold bond scheme, 2015. If actslaw could make india law abiding,then by this timethere should be no black money,no corruption,no crime. We use your linkedin profile and activity data to personalize ads and to show you more relevant ads.
Benami, benami transactions, benami property, benami lenden, benami sampatti, benamidar, real owner, beneficial owner, what type of transactions are known as benami transactions, what is benamidar. 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 amended law empowers the specified authorities to provisionally attach benami. Be it enacted by parliament in the sixtysixth year of the republic of india as follows. Any property held in benami will be seized by the government. Be it enacted by parliament in the thirtyninth year of the republic of india as follows. However, the hammer of the law, if literally interpreted, also adversely affects innocent persons who enter into genuine transactions. The benami transactions prohibition amendment bill, 2015 a bill further to amend the benami transactions prohibition act, 1988.
The systemic problems need to be addressed for re to stop being the epicenter of cash transaction and benami transactions. Benami transactions are those transactions which takes place to hide black money in form of purchasing property house,plot and land. In the last two years, cbdt has invigorated the map proceedings with many countries. Legislative history of the prohibition of benami transactions act, 1988 1. In real estate, the financial transactions and black money is very rampant. The benami transactions prohibition amendment bill, 2015 was introduced in lok sabha on may, last year by finance minister arun jaitley. 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 bill news and updates from the.
The new law amended the benami transactions act, 1988 and renamed as the prohibition of benami property transactions pbpt act, 1988. Benami transactions bill,2015 daily current affairs. The paper thus seeks to analyse the meaning of benami transactions and what colour it has taken over these years. Purchase or holding of properties in the name of other is known as a benami transaction in india. For section 2 of the principal act, the following section. Benami transactions prohibition amendment act, 2016.
Benami transaction prohibition act and its impact on law. Guide to the prohibition of benami property transactions. Law of the land the benami transactions prohibition. Amendment bill 2015, the benami transactions act is also aimed at increasing transparency. Protecting mountains and benami transactions prohibition amendment act of 2016. Benami transaction is a transaction where the property includes land, gold, intangible or tangible, any legal document is purchased in the name of person who has not paid for it. Benami transactions means a have black money and he wants to hide black money so he will purchase any propert.
This custom has been recognised by india courts for a long time. Journey of the law on prohibition of benami transactions. The topic is important from the view point of both general studies paper ii and iii. The benami transactions prohibition amendment act 2016 imposes draconian consequences on persons seeking to evade the law by holding property by illegitimate means. Mapping pakistans legal compliance with fatfs recommendations.
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