Benami transactions bill news and updates from the. Sep 27, 2016 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. Benami transactions prohibition amendment bill, 2015 1 what is benami. Jun 12, 2017 a major step towards eradicating black money, a benami property bill was introduced in lok sabha in may 2015 which sought an amendment to benami transaction act, 1988. Guide to the prohibition of benami property transactions act. The comprehensive amendment bill seeks to amend and strengthen benami transaction prohibition act, 1988 in terms of legal and administrative procedure. Benami properties were used to dodge taxes and reduce personal liability. Transaction or arrangement in respect of property carried out in fictitious name.
The union cabinet has approved new amendments to the benami transactions prohibition amendment bill, 2015. The act defines benami property, benami transaction and who is. Rstv law of the land the benami transactions prohibition. Except for 2 to 4 above, it is essential in all benami transactions to prove two ingredients. Benamitransactions prohibition bill 2015 on th may 2015 president assent on 10 th august 2016 5 ca sagar tilak sagar. It seeks to amend the benami transactions act, 1988, which prohibits benami transactions and provides for confiscating benami properties. All the rights and titles shall vest, free of all encumbrances, in the. Benami transactions prohibition act, 1988 wikipedia.
The bill included an amendment to the definition of benami transactions, establish authorities to deal with benami transactions and specify penalties for such transactions. Nov 09, 2016 the benami transactions prohibition amendment act 2016, which was passed by parliament in august this year, has come into effect. Evolution of concept of benami transaction in india. Key highlights of benami transactions prohibition amendment act, 2016 a brief introduction the income tax department has notified that the benami transactions prohibition amendment act, 2016 btp amendment act, will come into force from 1st november 2016. Benami transactions prohibition amendment bill, 2015. However, the benami transactions bill was passed in 2015 as a means of prohibiting the sale and transaction of such properties. Benami transactions prohibition amendment bill taxreturnwala. By clearing the 2015 amendment bill, the implementation of the provisions to control benami transaction is hoped to be achieved efficiently. Transaction or arrangement where owner of property denies propertys ownership.
A study of the benami transactions prohibition amendment act. 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. The benami transactions prohibition act, 2017 act no. 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. Benami transaction the concept 2 ca sagar tilak sagar. Jul 31, 2015 trending the bill was introduced in lok sabha on may, 2015. The benami transactions prohibition amendment bill, 2015 was introduced in lok sabha on may, 2015.
Benami transactions bill,2015 daily current affairs. On th may, 2015 the benami transactions prohibition amendment bill, 2015. Acquisition of a property in the name of a person other then the one paying the consideration thereof may result into a benami transaction. As a result, the person in whose name the property is purchased is just a mask of the real beneficiary. A study of the benami transactions prohibition amendment. Nov 18, 2016 benami transactions are those transactions which takes place to hide black money in form of purchasing property house,plot and land. Merchant shipping bill, benami transactions prohibition amendment act, 2016 today we will discuss the next two bills. A benami property can also be one where the person who made a payment for the property cannot be traced for any reason. The benami transaction prohibition act was first enacted in 1988 but has not been notified due to some infirmities. Be it enacted by parliament in the thirtyninth year of the republic of india as follows. 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. The act defines a benami transaction as any transaction in which property is transferred to one person for consideration paid by another. Benami transactions bill, 2015 linkedin slideshare.
The bill seeks to amend the benami transactions prohibition act, 1988 to. Below mentioned is the explanation of the the next two topics i. As with all other regulations, such as the real estate regulation and development act and the land acquisition rehabilitation and resettlement amendment bill 2015, the benami transactions act is also aimed at increasing transparency and professionalism in. Transaction or arrangement where the payer of consideration of property is fictitious or untraceable.
The practice of having a benami property had been legal for a while. To address these deficiencies, several years later, in 2011, the government of india introduced benami transactions prohibition bill, 2011 and 2015 after attacking black money by demonetisation announced on november 8th 2016 of high value currency notes, prime minister narendra modi is all set to take on benami properties to check. Property held in the name of the children or spouse through know income sources. It became rampant during the abolition of the zamindari system. The ppt gives details about benami transaction prohibition act. Definition of benami transaction is explained in section 2 of prohibition of benami property transaction act. The act defines a benami transaction as any transaction in which property is transferred to one. Benami transactions have been a bane of the indian economy since the 1980s, requiring a comprehensive legislation to curb the effects of such transactions which cripple a growing economy.
Prohibition bill 2015 on th may 2015 president assent on 10 th august 2016 5 ca. The number of benami transactions in the real estate sector has increased. Benami transactions means a have black money and he wants to hide black money so he will purchase any propert. Amendment bill, 2015 was introduced in 2015 the bill seeks to amend the benami transactions act. 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 is commonly accepted in india is that where a person buys property. The lok sabha has passed comprehensive benami transactions prohibition amendment bill, 2015 to curb domestic black money. Apr 23, 2018 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. Rigorous imprisonment of up to 7 years for benami transactions 16 aug, 2016, 09. Benamidar means a person or a fictitious person, as the case may be, in whose name the benami property is transferred or held and includes a person who lends his name. 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 prohibition amendment act, 2016 hereinafter referred to as the 2016 amendment act has amended the act to enlarge it from 9 sections to 72 sections, 2016 amendment act has renamed the 1988 act as prohibition of benami property transactions act,1988. The benami transactions prohibition amendment bill, 2015 was introduced in lok sabha on may, 2015 by the minister of finance mr.
Money undisclosed foreign income and assets and imposition of tax act, 2015, will help. It is covered under the polity section of the ias exam. An act further to amend the benami transactions prohibition act, 1988. The paper thus seeks to analyse the meaning of benami transactions and what colour it has taken over these years. Lok sabha passed the benami transactions prohibition amendment bill, 2015, that seeks to check generation of black money on july 27. Benami property transactions act in simple language. Benami transactions prohibition amendment act is an important topic for the upsc civil services exam. The benami transactions prohibition amendment act, 2016, designed to curb black money and passed by parliament in august 2016, came into effect. Benami transactions prohibition amendment act 2016 ias. Legislative history of the prohibition of benami transactions act, 1988 1.
Trending the bill was introduced in lok sabha on may, 2015. 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. Pdf lok sabha of parliament of india passed the muchawaited bill on. 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, 2016. The benami transactions prohibition amendment bill, 2015 was introduced in lok sabha on may, last year by finance minister arun jaitley. Be it enacted by parliament in the sixtyseventh year of the republic of india as follows. All you need to know about benami transactions bill the. Benami transactions prohibition act, 1988 is an act of the parliament of india that prohibits.
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. 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. Aug 12, 2016 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. Lok sabha on may, 2015 by finance minister arun jaitley. The bill provides for confiscation of benami properties and assets held in the name of another person or under a fictitious name to avoid taxation and conceal illgotten wealth. Legislation on benami transactions in india a critical. Case reference of benami transaction free legal advice. The benami transactions prohibition amendment bill, 2015 a bill further to amend the benami transactions prohibition act, 1988. Senate passes bill to curb benami transactions pakistan. A shoutout to the taxcompliant vsv is expected to resolve a major part of direct tax litigations worth about rs 4. The new law amended the benami transactions act, 1988 and renamed as the prohibition of benami property transactions. Benami property transactions and penalties for it bill. 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. 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.
Jul 21, 2016 the benami transactions prohibition amendment bill, 2015 was introduced in lok sabha on may, 2015. All you need to know about benami transactions bill the hindu. Benami transactions prohibition amendment act, 2016. Prohibition of benami property transaction act icsi. Jun 05, 2017 crucial bills and amendments for ias prelims 2017. Benami transactions prohibition act, 2017 v of 2017, the federal government is pleased to make the following rules, namely. Group 8 benami transactions act ppt free download as powerpoint presentation.
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. Mr veerappa moily submitted its report on the benami transactions prohibition amendment bill, 2015 on april 28, 2016. Benami property means any property which is the subjectmatter of a benami transaction and also includes proceeds from such propertysection 28. Nov 25, 2016 the present government brought in the benami transactions prohibitoin amendment bill in may 2015 and, after passage in parliament, it came into effect from 1 november 2016. The benami transactions prohibition amendment act 2016, which was passed by parliament in august this year, has come into effect. Any property which is subject matter of benami transaction, shall be liable to be. Prohibition of benami transactions prohibition of benami transactions. The act prohibits benami transactions and provides for confiscating benami properties. Lok shaba passes benami transactions prohibition amendment. Jul 30, 2016 the benami transactions prohibitionamendment bill, 2015, interalia, provides for the following namely.
The bill seeks to amend the benami transactions act, 1988. 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. It also stated that properties held benami could be acquired free of cost. 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. Benami transactions are those transactions which takes place to hide black money in form of purchasing property house,plot and land. On perusal of the 28th report of the standing committee on finance, dated april 2016, on the benami transactions prohibition amendment bill, 2015, it can be seen that the reason behind amending the 1988 act instead of repealing the said act, was to include all the benami transactions under its ambit on which no action was taken under the 1988. Jul 28, 2016 the lok sabha has passed comprehensive benami transactions prohibition amendment bill, 2015 to curb domestic black money. Real estate regulation and development act and land acquisition rehabilitation and resettlement amendment bill 2015, aimed at increasing transparency and professionalism in the industry, the benami transactions bill is a further step in the same direction. The topic is important from the view point of both general studies paper ii and iii.
Benami transactions have been in force for over 200 years now. Key highlights of benami transactions prohibition amendment. Following transactions are not considered as benami transactions and are excluded from the scope of the benami transaction prohibition bill, 2015. The benami transactions prohibition amendment bill, 2015. The benami transactions prohibition amendment act, 2016. 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. Be it enacted by parliament in the sixtysixth year of the republic of india as follows.
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