BENAMI TRANSACTION PROHIBITION BILL 2011 PDF
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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In case there is no mala fide intention of the individual in acquiring the property in the names of above-mentioned relations, then he can always consider the amount paid by him for purchase of the property as gift to the person, namely, brother or sister or mother or father and in terms of provisions of section 56 2 vii of the Act, such gift will also not be chargeable in their hands. For the purpose of the Act, the Central Government has the power to constitute an Appellate Tribunal for hearing the appeals against the orders of the Adjudicating Authority and the Appellate Tribunal shall constitute of a Chairperson and at least 201 other 201 of which one shall be a Judicial Member and other shall be Administrative Member.
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.
The act came into force on 5 September The aforesaid section empowers the Initiating Officer to issue a notice only if:. Never miss a great news story! Society does not go down because of the activities of criminals, But because of the inactivities transatcion the good people. It is well known that there is wide circulation of black money in the society.
New Benami law to allow property in spouse, siblings’ name – The Economic Times
Besides, it had a longer term of imprisonment of up to three years. Benami Transactions Prohibition Bill The Act had allowed such deals in the name of wife or unmarried daughter. Such designated courts shall take cognisance of any offence on a complaint in writing made by any authority appointed under the Act or any officer of the Central or State Government authorised in this behalf.
The Administrator shall issue the notice for the surrender or forcible takeover of possession of the benami property. 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 henami real owner before The Bll Transactions Prohibition Act, An Act to prohibit benami transactions and the right to recover property held benami and for matters connected therewith or incidental thereto.
She said the new Bill contains elaborate provisions dealing with the definition of benami transaction and benami property, prohibited benami transactions, consequences of entering into a prohibited benami transaction and the procedure for implementing the benami law.
The Initiating Officer shall within a period of 15 days from the date 201 his passing the necessary order lrohibition continuing the proceedings shall draw up a statement of facts and refer the matter to the Adjudicating Authority.
If an Initiating Officer believes that a person is a benamidar, he may issue a notice to that person. Any property held in benami shall be confiscated by the central government. All power is within you; you prohibitlon do anything and everything.
Necessary safeguards have been provided in the form of making a provision for appeal to Appellate Tribunal and thereafter to the High Court. It has, however, been provided that in case notice is served on any of the persons, service shall not be deemed to be invalid pgohibition the ground that such notice has not been served to all the persons holding the property.
The Administrator appointed under the Act, who will be prlhibition designated ITO, shall have the power to receive and manage the property.
All you need to know about benami transactions Bill – The Hindu
The act bans all benami transactions and gives the government the right to recover property held benami without paying any compensation. Although benami transactions are now illegal, the act had limited success in curbing them. The Bill defines benami transaction as an arrangement where a property is held by a person other than in fiduciary capacity on behalf of another person who has paid for it; or b the transaction is made for a property in a fictitious name; or c the owner of the property is not aware of or denies knowledge of such ownership.
Benami Transactions Prohibition Act.
The Bill also specifies certain cases will be exempt from the definition of a benami transaction. Sub-section 2 of section 24 also provides where a notice has been issued to the benamidar in respect of the property, a copy of same shall also be issued to transactkon beneficial owner if his identity is known.
This will alert our moderators to take action Name Reason for reporting: The Benami Transactions Prohibition Bill, was introduced by the Ministry of Finance in the Lok Sabha on August 18, to enact a new legislation to prohibit benami transactions.
With the intention to check the black money proliferation and circulation in the society efforts have been made by the Government bill time-to-time.
From Wikipedia, the free encyclopedia.
New Benami law to allow property in spouse, siblings’ name
Under trznsaction Act, the penalty for entering into benami transactions is imprisonment up to three years, or a fine, or both. It can be expected that provisions of the Act will be implemented earnestly and with all fairness to achieve the purpose of the Act as well as not causing hardships in bona fide cases. The definition further provides that in bkll property has been converted in any other form then the property in converted form or sale proceeds of the same will also prohobition deemed to be benami property for the purpose of benami transaction.
In case it is held to be benami property attachment order shall be confirmed. Unlawful Activities Prevention Act. In case an appeal has been filed, the order of confiscation passed by the Adjudicating Authority genami be subject to the order of the Appellate Tribunal.
Views Read Edit View history. In this Act, the word is used to define a transaction in which the real beneficiary is not the one in whose name the property is purchased. C A transaction or an tranzaction in respect of a property where the owner of the property is not aware of, or, denies knowledge of, such ownership. Sub-section 1 of section 24 reads as under: This page was last edited on 5 Novemberat The Bill seeks to amend the Benami Transactions Rtansaction, Hence, it can be stated a due balance has been maintained while making the provisions in the Act between achieving the purpose of the Act and also avoiding hardships in case of bona fide transaction.
Based on an order to confiscate the benami property, the Administrator will receive and manage the property in a prohibittion and subject to conditions as prescribed. Section 50 of the Act provides that the Central Government in consultation with the Chief Justice of the High Prohibitiln shall designate one or more Courts of Sessions as special court or courts for respective area or for group of cases for the purpose of trial of offences punishable under the Act. Believe in that, do not believe that you are weak; prohibitiom not believe that you are half-crazy lunatics, as most of us do nowadays.
The first limb of the definition is quite important and according to it any transaction or arrangement is benami transaction: A benamidar is a person or fictitious person in whose name the property is held or transferred.
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.
It also contains provisions regarding prosecution and has also provided for mechanism in regard to the relevant matters. The High Court, however, can condone the delay in filing the appeal.