- 1 Benami Property
- 2 Benami Property Meaning
- 3 Benami Property Act
- 4 Benami Property Act 2016
- 5 Identification of Benami Property
The word “Benami” is come from the Persian Language that means without a name. Now we see Benami Property meaning. You have some little idea about Benami Property. In Simple terms, we can say that Benami Property is the property which has not a name of the real owner.
Benami Property Meaning
Benami property means a person is purchasing a property but, that is not a real beneficiary. This type of assets holder hides the identity of a real beneficiary.
As Per Benami Property Act, 1988
Under Section 2(a) of the Benami Transactions (Prohibition) Act, 1988, Benami Transaction means Any Transaction in which property is transferred to one person for a consideration paid or provided by another person.
Under Section 2(a) of the Benami Transactions (Prohibition) Act, 1988, Property means a property of any kind, whether movable or immovable, tangible or intangible, and Includes any right or interest in such property.
Benami Property Act
Benami Property Act 1988, is an act make by Indian Parliament to stop the financial transaction relates to assets.
This Act defines a Benami Property that means another person does a financial transaction of Property which is transferred to one person considered as an owner but payment is made by someone else.
Benami Property is increasing Balck money in India. Thus, Indian government prohibited Benami Property to stop the black money.
As per these rules, the government takes out all property from the property holder without paying compensation for their assets/property.
This act comes into enforcement on 5th September 1988. So now, the Benami financial transactions in real estate are prohibited.
In 1973, the Law Commission of India was studying different acts and regnant the Benami property transactions, thus, to solve the issue the Law Commission is thinking to pass The Benami Transaction (Prohibition) Act, 1988. It was putting in parliament in May 1988.
However, there is some mistake arising in the Act so, to operationalizing the Act was not framed. To address the drawbacks in the Act, the Government is reopening the Benami Transaction (Prohibition) Bill, 2011 in the year 2011.
Benami Property Act 2016
This Act is to apply Benami Transaction property act 2016 for to stop illegal activity relates to property and also to stop the people who are holding Black money and Benami Property.
Penalty provision for Benami Property Under PBPT Amendment Act 2016
1) Once, a Property is to declare as Benami Property. The officers appointed from the income tax officers will be managed, disposed of the Benami property.
2) According to PBPT, if anyone holds Benami property and inflate the people for this type of transaction. The PBPT defines Benami transaction. If anybody disobeys the act, deserve a punishment about seven years in prison and fine also.
3) Moreover, the person is liable to pay Fine about 25% the fair market price of the Property.
4) As per PBPT Act, the Benami property holder can’s recover the Assets, because of the Asset becomes Benami. The government will seize the Property without any compensation.
Identification of Benami Property
Which properties are not including under the head of Benami Properties?
1) The property which is buying in the name of person’s wife and their Unmarried Daughter is not a Benami Property.
2) The property which is jointly purchased by person’s wife and other relatives with known source of fund is not Benami Property.
3) If any Benami Property is Declared under the IDS scheme-2016 is not a Benami Property.
4) The Property is Purchased by Karta of the HUF in the interest of all trustees is not a Benami Property.
5) Any property holds by Charitable trust, or Religious Trust is not a Benami Property.
Which properties are including under the head of Benami Properties?
1) The Fund which is using in the purchase of property. Tax on that fund paid or not.
2) The property is held by another person the fund provided by other third person is including in Benami Property.
3) The property takes place for the immediate and future benefit for another person who provided consideration.