BENAMI TRANSACTIONS (PROHIBITION) AMENDMENT ACT, 2016

Q: Earlier the benami transactions are defined as a “transaction where a property is held by or transferred to a person, but has been provided for or paid by another person”. This Act has amended this definition by to add other transactions which qualify as benami,

rsjlexsys, Delhi

12th September 2016

Legal in Delhi

real estate

properties

arun jaitley

amendment

benami transaction

benami tranactions amendment act 2016

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Replies (3)

Hi folks.....
For your knowledge, i would like to mention few points that you property will considered as "Benami Property" in the eyes of law.....
A transaction is considered as benami 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.

In these cases, the property is held for the immediate or future benefit, direct or indirect, of the person who has provided its payment.

Lok Sabha passed the bill on July 27 and Rajya Sabha gave its nod on August 2.

Abhinandsavalla, Mumbai

14th September 2016

Comment

Yes, and as per the new law which has amended Benami Transactions Act of 1988, whoever is found guilty of the offence of benami transaction shall be punishable with rigorous imprisonment for a term which shall not be less than 1 year, but which may extend to 7 yrs. and shall also be liable to fine which may extend to 25% of the fair market value of the property.

Anish Mazumder, Kolkata

14th September 2016

So, those having unaccounted money should take advantage of the disclosure window ending September 30 to come clean by paying 45% tax and penalty.

Since it is like the black money law, there has to be a defensive provision which they have put it in this particular law and I hope people will have gotten the clear signal and will not give the state an opportunity as far as using this law is concerned.

Vivek Kulkarni,

14th September 2016

Comment

Hi,
Finance Minister Arun Jaitley was replying to a debate on Benami Transactions (Prohibition) Amendment Bill, 2016 in the Rajya Sabha, which later passed the legislation by voice vote. The Lok Sabha passed it last week.

Committing to deal strongly with black money, Finance Minister Arun Jaitley warned those having undisclosed income against missing the chance to make the declaration by September 30.

Nikita Mishra, Delhi

14th September 2016

Comment

Right Nikita!!
And people keeping "Benami" properties to avoid taxes will get up to 7 yrs rigorous imprisonment and fine, as per a new law aimed at checking black money in real estate sector. The law has strict provisions to seize 'Benami Properties' and hard penalty for entering into such transactions.

Jitendar, Gurgaon

14th September 2016