Benami Transactions (Prohibition) Bill, Purpose: To prohibit holding property Benami and restrict the right to recover or transfer such property. THE BENAMI TRANSACTIONS (PROHIBITION) ACT, An Act to prohibit benami transactions and the right to recover properly held benami and for. Subsequently, in the year , a Bill called “The Benami Transactions ( Prohibition) Bill, ″, was introduced in the Parliament wherein.
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She said the new Bill contains elaborate provisions dealing with the definition of benami transaction and benami property, prohibited benami transactions, consequences of entering 22011 a prohibited benami transaction and the procedure for implementing the benami law.
Inthe Law Commission of India after studying various Acts and prevailing benami system, recommended prohibitjon an Act to tackle the issue. The Act provides for attachment and confiscation of benami property.
New Benami law to allow property in spouse, siblings’ name – The Economic Times
It has further been provided that the notice shall provide a period of not less than 30 days to the person to whom the notice has been issued to furnish the information sought. The Initiating Officer may hold the property for 90 days from the date of issue of the notice, subject to permission from the Approving Authority. It is hoped that machinery appointed under the Act shall also act reasonably while implementing the provisions of the Act.
Under the Act, an Authority to acquire benami properties was to be established by the Rules.
Analysis of Provisions of Prohibition of Benami Property Transactions Act, « AIFTP
Any property held in benami shall be confiscated by the central government. Besides, it had a longer term of imprisonment of up to three years. The Act also has safeguard mechanisms such as the adjudicating authority and the appellate 20011 for appeals.
These authorities shall have same powers as vested in a civil court while trying a suit in matters such as inspection, production of documents, issuing commissions, etc.
He is also empowered to take service of any police officer to assist him in taking the possession of tranaction property. Archived from the original PDF on My Saved Articles Sign in Sign up.
The Initiating Officer or the Adjudicating Authority may impound or retain any books of accounts that it may feel is transactioon for the inquiry, for a period not exceeding three months from the date of attachment of the property. For the purpose of implementing the provisions of Act, the Act provides for appointment of following authorities: Choose your reason below and click on the Report button.
Benami transactions are one of the sources of circulation and investment of black money. Background It is well known that there is wide circulation of black money in the society. In addition, any person who wilfully gives false information shall be liable to an imprisonment of three months to two years and a fine of up to 10 per cent of the market value of the property.
It may be stated that the Central Government has not appointed separate Adjudicating Authority and Appellate Tribunal under the provisions of this Act and vide Notification dated lrohibition, it has been notified that the Adjudicating Authority and the Appellate Tribunal established under the provisions of the Prevention of Ttansaction Laundering Act,shall discharge the function under this Act until separate authorities are appointed by the Central Government under this Act.
The Bill amends this definition to add other transactions which qualify as benami, such as property transactions where: Section 53 provides that where any person enters into a benami transaction in order to defeat the provisions of any law or to avoid payment of statutory dues or to avoid payment to creditors, the beneficial owner, benamidar and any person who abates or induces any person to enter into a benami transaction shall be guilty of the offences of benami transaction.
International Business World News. Authorities shall also have the powers to call for information from any person and require production of documents or books of account and also to impound the books or documents.
In conclusion, it is stated that provisions of the Act appear to be quite effective for the purpose of checking the benami transactions and as a result thereof to check evasion of tax and black money circulation in the society. A question can be raised that if property can independently be acquired in the name of spouse or children, why there is a condition that property in the name of brother or sister or even in the name of father or mother can only be jointly with the individual providing the consideration and not singularly in their names.
Retrieved 28 October On passing the order of confiscation the Administrator shall issue a notice in writing to the person who is in possession of the benami property to surrender or deliver the possession of the same to the Administrator or any other person authorised by him in writing in his behalf within a period of seven days of the date of service of the notice. Updated versions were therefore passed in andseeking to more comprehensively enforce the prohibitions.
Section 3 of the Act provides that no person shall enter into any benami transaction. Offences and prosecution Apart from confiscation of benami property, sections 53 to 55 of the Act also provide for prosecution of the persons involved in benami transactions. NIFTY 50 10, 2.
All you need to know about benami transactions Bill
In case it is held not to be benami property attachment order shall be revoked. This section, however, has an exception, which was provided in Income Disclosure Scheme, that in case the real owner has declared his undisclosed income under that scheme then benamidar can transfer the property to the real owner before It may be stated that the powers under the Act have been provided to Income-tax authorities to enforce the provisions of the Act and proper safeguards have been provided in section 24 of the Act for issuing the notice for initiating the proceedings.
Based on an order to confiscate the benami property, the Administrator will receive blil manage the property in a manner and subject to conditions as prescribed. The High Court on hearing the matter may pass such order as it may deem fit in appeal filed before it.
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To address these deficiencies, several years later, inthe Govt of India introduced “Benami Transactions Prohibition Bill, “. August 02, The Bill restricts the right of any person who is claiming to be the real owner to recover such property.