The central legislature of India has over and over expressed its goal to manage Benami exchanges. It is, henceforth, expected that few solid strides and budgetary kerbs are to be reported in the Union Budget 2017-18.
The Benami property Transactions is a law which was first introduced to the public on the 5th of September 1988 by the Parliament of India. The updated version of this law was launched in 2011 and was released in 2016.
Via Objective of the scheme
The main aim of the Benami property Transaction law is to sustain and prohibit and Benami transactions in which property is transferred to one person for a consideration paid by another person.
Benefits of the Benami property Transactions Law
- It helps to fight against black money in country and outside the country
- It also helps to prohibit illegal transactions
- Benami property Transactions law benefits to arrest corruption in the country
What is the Benami property Transactions?
The Benami (without a name) property transaction refers to property purchased by a person in the name of some other person. The property is purchased in the name of the person is called Benamdar (Benami property holder) and the property is purchased is called Benami Property. Under this transaction, the real owner is the person who used money to buy property in the name of another person
Silent Features of the Benami Property Transactions
- The Benami (without a name) property transaction refers to property purchased by a person in the name of some other person
- Benami property Transactions is a law which was first introduced on 5 September 1988 by Parliament of India. The updated version of this law came on 2011 and currently came in 2016
- Persons engaged in Benami transactions may face up to 7 years imprisonment and fine which may extend to 25 percent of the fair market value of the Benami property
- The legitimate structure for managing Benami exchanges in the old Benami Transactions law was frail. Presently, the revised Law 2016 enables the wage charge Department to ask into any individual, place, records or property amid an examination concerning any issue identified with a Benami property Transactions
- Under this law, the Benami property also be confiscated
Which is not a Benami transactions?
- Property held under the name of spouse or child, for which the amount is being paid through a known source of income is not a Benami property
- A joint property with brother, sister or other relatives for which the amount is paid through a known source of income is not a Benami property
- Property held by someone in a fiduciary capacity; that is, transaction involving a trustee and a beneficiary
- If a property is purchased with joint ownership using fund sources that are known and can be accounted for, the property is not a Benami property
References & Details
For more details about Benami, property Transactions click on the link provided.