Prohibition of benami property transactions act, 1988 income tax. Overview of prohibition of benami property transactions. 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. Benami transactions act prohibition, 1988 bare acts. The benami transaction is any transaction in which property is transferred to one person for a consideration paid by another person. Benami transaction prohibition act, 1988 history of benami transactions. The benami transactions prohibition act adjudicating authority to hear affected persons and pass order holding that property is benami or not. The act defines a benami transaction as any transaction in which property is transferred to one. The title of the act, 1988 was change from benami transactions prohibition act, 1988 to the prohibition of benami property transactions act, 1988. The benami transactions prohibition amendment act, 2016. 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 adt cause as to why a property should not be treated as a. Benami transaction prohibition act, 1988 history of benami transactions benami is a persian term which essentially means something without a name. The benami properties attached include deposits in bank accounts and immovable properties.
In initial stage there were various infirmities in the legislation and same have been shorted out by amendment in act, 1988, through benami transactions prohibition amendment act, 2016. Accordingly, the benami transactions prohibition act, was enacted prohibitionn the parliament which came into force on 19 may held that surendra kumar was the benamidar and in point of act on the date of execution of the deed of release he had no right or interest transactionss the property. After the promulgation of the proposed act, all benami transactions will be punishable crime in the manner laid down in the act and all benami properties can be confiscated by the federal government, after due process of law. Specialized anti benami units have been set up by the income tax department across the country and in almost every state and thousands of properties already stand attached under the prohibition of benami property transactions act, 1988 as amended in 2016 hereinafter benami act. Acquisition of benami property and act not to apply in certain cases ss 5 and 6 of the original act.
A retrospective operation is not be given to a statute so as to impair existing rights or obligations. Benami law recent trends and impact on corporate structures. Transaction covered by section 53a of transfer of property act, 1882. The prohibition of benami property transactions act, 1988 as amended by the benami transactions prohibition amendment act, 2016 w. Benami is a persian term which essentially means something without a name. Feb 23, 2019 several amendments were made to the existing benami transactions prohibition act, 1988 and the benami law in its new avataar came into force w. Deduction us 54f delay in delivery of possession of the property. Dec 03, 2019 prohibition of benami property transactions act, fri, oct 28 the times of india.
The assessee is entitled only to claim interest paid as part of the sa. Benami purchases are purchases in false name of another person, who does not pay the consideration but merely lends his name, while the real title vests in another person who actually purchased the property and he is the beneficial owner. Prohibition of benami property transactions act, 1988. Nov 1, 2016the prohibition of benami property transactions rules, 2016 came into force 6. Benami transaction prohibition act 1988 pdf the original law relating to benami transactions was laid down in the benami transactions prohibition act, this act consisted of only.
Distinction between the original act and amended act jagdisht punjabi september 21, 2018 originalactamended act benamitransactions prohibition act, 1988 prohibition of benamiproperty transactions act, 1988 9 sections72 sections acquisitionof propertyconfiscationof property benamitransactions rules absent benamitransactions rules notified. The prohibition of benami property transactions act, 1988 long title. This act may be called the prohibition of benami property transactions act, 1988 it extends to the whole of india except the state of jammu and kashmir. Prohibition of benami property transactions act, 1988 india code. Amendment act, the existing benami transactions prohibition act, 1988 shall be renamed as prohibition of benami property transactions act, 1988 pbpt act. Jun 17, 2019 any property, whether movable or immovable, tangible or intangible, which has been the subject matter of a benami transaction, is a benami property. For section 2 of the principal act, the following section shall be substituted, namely. Be it enacted by parliament in the thirtyninth year of the republic of india as follows.
The huge accumulation of black money has led to the emergence of a parallel economy in the indian market and this, in turn, made the rich people richer and the poor people poorer. Accordingly, the benami transactions prohibition act, 1988 was enacted by the parliament which came into force on 05. Benami transactions prohibition act, 1988 wikipedia. Benami transaction under the prohibition of benami.
The prohibition of benami transactions act, 1988 3 page by ca nirmal ghorawat for private circulation only 5. After coming into effect of the btp amendment act, the existing benami transactions prohibition act. Prohibition of benami property transaction act icsi. Benami property transactions act, 1988 has been amended by the benami transactions prohibition amendment act, 2016 btp amendment act. Mar 12, 2020 accordingly, the benami transactions prohibition act, was enacted prohibitionn the parliament which came into force on 19 may held that surendra kumar was the benamidar and in point of act on the date of execution of the deed of release he had no right or interest transactionss the property. Prohibition of the right to recover property held benami. Any property, whether movable or immovable, tangible or intangible, which has been the subject matter of a benami transaction, is a benami property. Notwithstanding such repeal, anything done or any action taken under the said ordinance shall be deemed to have been or taken under the corresponding provisions of this act. Any property, transactin movable or immovable, tangible henami intangible, which has been the subject matter of a benami transaction, is a benami property. Thissystemisusuallycalledthebenami systemwhichisandhasbeencommonpracticeinthiscountry.
So after further amendment, benami transactions prohibition amendment act, 2016 came into force on november 1, 2016. Know all about benami property act pdf, people who doesnt pay their taxes and who always try to evade their taxes in some way or the other are the ones responsible for accumulating black money in the economy. Benami property means any property which is the subject matter of a benami transaction and also includes the proceeds from such property. An act further to amend the benami transactions prohibition act, 1988.
Be it enacted by parliament in the sixtyseventh year of the republic of india as follows. Distinction between the original act and amended act jagdisht punjabi may 04, 2019 originalactamended act benamitransactions prohibition act, 1988 prohibition of benamiproperty transactions act, 1988 9 sections72 sections acquisitionof propertyconfiscationof property benamitransactions rules absent benamitransactions rules notified. Aug 01, 2019 an act further to amend the benami transactions prohibition act, be it enacted by parliament in the sixtyseventh year of the republic. Such a property is considered benami and illegal under the prohibition of benami. The benami transactions prohibition of right to recover property ordinance, 1988. The prohibition of benami property transactions act, 1988. How benami law changes impact both old and new property. Benami transactions prohibition act, 1988 is an act of the parliament of india that prohibits certain types of financial transactions. The provisions of sections 3, 5 and 8 shall come into force on 01. Both section 7 of the benami act and section 4 of the benami ordinance repeal section 82 of the trusts act keeping section 81 of the trusts act intact.
Benami transaction prohibition of benami transactions. Apr 29, 2019 in initial stage there were various infirmities in the legislation and same have been shorted out by amendment in act, 1988, through benami transactions prohibition amendment act, 2016. Benami property benami property means any property which is the subject matter of a benami transaction and also includes the proceeds from such property property means assets of any kind, whether movable or immovable, tangible or intangible, corporeal or incorporeal and includes any right or interest or legal documents or. The act defines a benami transaction as any transaction in which property is. Short title, extent and commencement 1 this act may be called the benami transactions prohibition act, 1988. In this act, unless the context otherwise, requires. The prohibition of benami property transactions act, 1988 vasai branch of wirc, icai. Benami transaction prohibition act, 1988 consultease.
Benami act is not only related to property from proceeds of crime. To curb black money, the modi government in july 2016 decided to amend the original act. Offence of money laundering whosoever directly or indirectly attempts to. The central board for direct taxes cbdt has now notified that the provisions of the benami act would come into effect from november 1, 2016, and that. Benami property transactions act, has been amended by the benami transactions prohibition amendment act, btp amendment. 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. The amendments sought to block escape routes for all benami transactions since 1988, and were passed in parliament some months later. Know all about benami property act pdf pradhan mantri yojana. In this act, unless the context otherwise requires, 1 adjudicating authority means the adjudicating authority appointed under section 7. The first act against benami properties ws passed in 1988 as the prohibition of benami property transactions act, 1988. Prohibition of benami property transactions act, fri, oct 28 the times of india. Several benami transactions havebeen identified since the coming into effect of the amended law.
The benami transactions prohibition of the right of recover property ordinance, 1988 ord. Benami transaction prohibition of benami transactions act, 1988. Be it enacted by parliament in the sixtysixth year of the republic of india as follows. The benami transactions prohibition act, 1988 maharashtra.
Dec 25, 2016 the first act against benami properties ws passed in 1988 as the prohibition of benami property transactions act, 1988. Prohibition on retransfer of property by benamidar. The prohibition of benami property transactions act, 1988 y t. Overview of prohibition of benami property transactions act, 1988. Benami transactions prohibition act 1988 amended act 2016 9 sections 71 sections. Specialized antibenami units have been set up by the income tax department across the country and in almost every state and thousands of properties already stand attached under the prohibition of benami property transactions act, 1988 as amended in 2016 hereinafter benami act. The rules and all the provisions of the btp amendment act shall come into force on 1st november, 2016. The benami transactions prohibition act, 1988 indian introduction. An act to prohibit benami transactions and the right to recover property held benami and for matters connected therewith or incidental thereto. Know all about benami property act pdf black money is one of the major problems in india. The central board for direct taxes cbdt has now notified that the provisions of the benami act would come into effect from november 1, 2016, and that it has been renamed as the prohibition of benami property transactions act, 2016 pbpt act. Section 5 of the benami transactions prohibition act, 1988 applies only to tripartite or benami transactions and not to bipartite or sham transactions, for if it had been so, the property covered by bipartite transactions would also be liable to be acquired without compensation or payment of any amount and the legislature too has not declared. Several amendments were made to the existing benami transactions prohibition act, 1988 and the benami law in its new avataar came into force w. Overview of prohibition of benami property transactions act, 1988 2.
Benami property transactions act, 1988 notified to be effective from 01. The benami transactions prohibition amendment bill, 2015 a bill further to amend the benami transactions prohibition act, 1988. The benami transactions prohibition of the right to recover property ordinance, 1988 ordinance 2 of 1988, is hereby repealed. Let us understand all the important provisions like benami property, benami transaction, exceptions to them, penalty, prosecution, adjudication authorities etc in detail under prohibition of benami property transaction act in detail. Furthermore, there will be prohibition on the retransfer of benami property held by benamidar to the beneficial owner. This is defined so in section 28 of the prohibition of benami property transactions act, 1988 pbpt act. The income tax department never asks for your pin numbers, passwords or similar access information for credit cards, banks or other financial accounts through email the income tax department appeals to taxpayers not to respond to such emails and not to share information relating to their credit card, bank and other financial accounts. Revoke provisional attachment if satisfied the property is not benami.