The new law amended the benami transactions act, 1988 and renamed as the prohibition of benami property transactions pbpt act, 1988. The act defines benami property, benami transaction and who is benamidar. 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. 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. What is benami transactions prohibition amendment act, 2016. Benami transactions prohibition amendment act 2016 ias. Pdf lok sabha of parliament of india passed the muchawaited bill. The benami transaction prohibition amendment bill, 2015 was introduced before the parliament by the nda government in july 2016.
Importance of service of documents referred in the show cause notice issued under indian income tax act, 1961 and indian black money undisclosed foreign income and assets and imposition of tax act, 2015 criminal law 19 may 17. Merchant shipping bill, benami transactions prohibition amendment act, 2016. Benami transactions prohibition amendment bill, 2015. Authorities, which have been specified, are empowered to attach. Guide to the prohibition of benami property transactions act. On th may, 2015 the benami transactions prohibition amendment bill, 2015. All you need to know about benami transactions bill the hindu. 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. However, the benami transactions bill was passed in 2015 as a means of prohibiting the sale and transaction of such properties. Prohibition of benami property transactions rules, 2016 form 3 see rule101. Benami property transaction prohibition act the benami transactions prohibition act of 1988 wasnt brought into operation on account of some defects inherent in the act.
The benami transactions prohibition amendment act, 2016. Key highlights of benami transactions prohibition amendment. Analysis of new stringent law to prohibit benami transactions. 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 the industry. Bill to provide for prohibition of holding property in benami. Quick guide for benami property transaction prohibition. Benami transactions prohibition amendment act, 2016 mains.
Article deterrences of benami transaction prohibition amendment act, 2016, an evaluation dr. The benami transactions prohibition amendment act 2016 imposes draconian consequences on persons seeking to evade the law by holding property by illegitimate means. May, 2015 the benami transactions prohibition amendment bill, 2015 was introduced in lok sabha on may, 2015 by the minister of finance mr. Prohibition of benami property transactions act, 1988 income tax. Benami transactions prohibition amendment act, 2016. Below mentioned is the explanation of the the next two topics i. 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. Benami transaction prohibition act and its impact on law. This means that a property that is interpreted as being a benami home could be.
By clearing the 2015 amendment bill, the implementation of the. The paper thus seeks to analyse the meaning of benami transactions and what colour it has taken over these years. The act prohibits benami transactions and provides for confiscating benami properties. Case reference of benami transaction answered by expert civil lawyer. The benami transactions prohibition amendment bill, 2015 was introduced in lok sabha on may, last year by finance minister arun jaitley. It extends to the whole of india except the state of jammu and kashmir. The modified new legislation will be known as prohibition of benami property transactions act, 1988 pbpt act.
Nov 25, 2016 a new benami transactions prohibition bill to replace the 1988 act was introduced in 2011, but it lapsed with the dissolution of the fifteenth lok sabha. In the context of property, this means use and benefit by the person other than the person who is fictitiously and without substance, in form, reflected as the owner. Over a dozen amendments were made to the benami transactions prohibition bill, 2016, by the senate standing committee on finance and revenue. 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. Prohibition of the right to recover property held benami. An arrangement where a property is held by one person and amount for it is provided by another. It aims to catch those who channelise their black money into real estate illegitimately. Benami transactions prohibition act, 1988 is an act of the parliament of india that prohibits. Whoever enters into any benami transaction shall be punishable with imprisonment for a term which may extend to three years or with fine or with both. Nov 09, 2016 the benami transactions prohibition amendment act 2016, which was passed by parliament in august this year, has come into effect. The benami transactions prohibition amendment bill, 2015 was introduced in lok sabha on may, 2015. Substituted for words passed by the or adjudicating authority by prohibition of benami property transactions. The act prohibits benami transactions and provides for. The benami transactions prohibition amendment bill, 2015.
The benami transaction prohibition act, 1988 hereinafter referred as the act was enacted in order to prohibit all benami transactions and recovery of property which has been held as benami. A study of the benami transactions prohibition amendment act. Law to get stricter under amended benami transactions. A new benami transactions prohibition bill to replace the 1988 act was introduced in 2011, but it lapsed with the dissolution of the fifteenth lok sabha. The benami transactions prohibition amendment bill, 2015 a bill further to amend the benami transactions prohibition act, 1988. The bill included an amendment to the definition of benami transactions, establish authorities to deal with benami transactions and specify penalties for such transactions. 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. A study of the benami transactions prohibition amendment. However, the hammer of the law, if literally interpreted, also adversely affects innocent persons who enter into genuine transactions. According to this bill, a property is a benami property if any of the following conditions are satisfied.
Prohibition amendment bill, 2015 was introduced in. By clearing the 2015 amendment bill, the implementation of the provisions to control benami transaction is hoped to be achieved efficiently. The act gives the government powers to frame rules to provide for an authority to confiscate benami properties, but, such a body has not been notified. The benami transactions prohibition amendment bill, 2015 was introduced in lok sabha on may, 2015 by the minister of finance mr. The benami transactions prohibition amendment bill, 2015 which was introduced in lok. One such serious and sound step is enactment of the benami transactions prohibition amendment act 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, i. Benami is a persian urdu language word which means anything without name. The amendment bill, 2015 was first introduced in the lok sabha last year, on may, 2016 by finance minister arun jaitley. Quick guide for benami property transaction prohibition act. Benami transactions tracing the evolution of benami law in. Apr, 2018 the benami transaction prohibition amendment act, 2016 is the result of passing of 2015 amendment bill and has provided a exhaustive definition of benami transaction and also detailed machinery for the implementation of the provisions to control benami transaction efficiently. Benamitransactions prohibition bill in rajyasabhaon 31 st august 1988 presidents assent on 5th september 1988 benamitransactions prohibition bill 2011 on 18 th august 2011 benamitransactions prohibition bill 2015 on th may 2015 president assent on 10 th august 2016 5 ca sagar tilak sagar.
The government of india is adamant to curb black money and all set to take on benami properties 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. The bill seeks to amend the benami transactions prohibition act, 1988 to. Case reference of benami transaction free legal advice. Though the benami transactions prohibition act, 1988 has been on the statute book since more than 28 years, the same could not be made. 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. The benami transaction prohibition amendment act, 2016 is the result of passing of 2015 amendment bill and has provided a exhaustive definition of benami transaction and also detailed machinery for the implementation of the provisions to control benami transaction efficiently. In year 2015, the benami transactions prohibition amendment bill was passed. Benami transactions prohibition act section 4 judgments. Benami transactions prohibition amended act, 2016 benami transactions prohibition act, 1988 is an act of the parliament of india that prohibits certain types of financial transactions. The act amends the existing benami transactions prohibition act, 1988, and came into effect on november 1, 2016. Benami transactions prohibition amended act, 2016 pib. Be it enacted by parliament in the sixtysixth year of the republic of india as follows. Lok sabha on may, 2015 by finance minister arun jaitley. Report of the standing committee on finance on the btp bill, 2011 pdf.
A property that is held by a person or is transferred to a person but the price of the property has been paid by someone else. Iv2007bc459 the complaint could not have been thrown out at the threshold. The ppt gives details about benami transaction prohibition act. 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. Evolution of concept of benami transaction in india. Dec 06, 2016 one such serious and sound step is enactment of the benami transactions prohibition amendment act 2016. Substituted for words passed by the or adjudicating authority. The act was designed to curb black money and the latest amendments are aimed at giving the act some teeth in. In order to effectively prohibit benami transactions, the benami transactions prohibition amended act of 2016 came into operation after the amendment. Sabha on may, 2015 is aimed at curbing the circulation of. The current government had introduced benami transactions prohibition amendment bill, 2015 in july 2016 in parliament. Sec 32 whoever enters into any benami transaction on and after the date of commencement of the benami transactions prohibition amendment act. The current government had introduced benami transactions prohibition amendment bill in july 2016 in parliament. Any property which is the subject matter of a benami transaction and also includes the proceeds from such property.
The act defines a benami transaction as any transaction in which property is transferred to one. The act defines a benami transaction as any transaction in which property is transferred to one person for consideration paid by another person. All about benami properties and recent legal developments. Act shall not apply in respect of the declaration of undisclosed income made in the form of. Benami transactions tracing the evolution of benami law 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. A shoutout to the taxcompliant vsv is expected to resolve a major part of direct tax litigations worth about rs 4. Group 8 benami transactions act ppt free download as powerpoint presentation. Jul 21, 2016 the benami transactions prohibition amendment bill, 2015 was introduced in lok sabha on may, 2015. The prohibition of benami property transaction act, 1988 came into force on the 19th day of may, 1988.
The act defines a benami transaction as any transaction in which property is transferred to one person for a consideration paid by another person. Dec 26, 2016 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 the industry. Jun 05, 2017 crucial bills and amendments for ias prelims 2017. Prohibition of benami transactions 1 no person shall enter into any benami transaction. The benami transactions prohibition amendment act, 2016 is an amendment of the older benami transactions prohibition act 1988. The benami transactions prohibition amendment act, 2016, designed to curb black money and passed by parliament in august 2016, came into effect. Then referred to by a standing committee on finance. The bill seeks to amend the benami transactions prohibition act, 1988 to i amend the definition of benami transactions, ii establish adjudicating authorities and. Whoever enters into any benami transaction shall be punishable with an imprisonment. With a view to providing effective regime for prohibition of benami transactions, the said act was amended through the benami transactions prohibition amended act, 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. It is a proven fact that black money and corruption hampers development and growth of the nation.
This bill has been now passed in both the houses of parliament and has become an act benami transactions prohibition amendment act, 2016 with effective from 11th august, 2016. Dec 22, 2016 the current government had introduced benami transactions prohibition amendment bill, 2015 in july 2016 in parliament. Jul 28, 2016 the lok sabha has passed comprehensive benami transactions prohibition amendment bill, 2015 to curb domestic black money. Guide to the prohibition of benami property transactions. Benami transactions prohibition amended act, 2016 iref. Bill, 2015 the benami transactions prohibition amendment bill, 2015 was introduced in lok sabha on may, 2015 by the minister of finance mr. Jan 25, 2017 the prohibition of benami property transaction act, 1988 came into force on the 19th day of may, 1988. The benami transactions prohibition act, 2016 national.
What is benami transactions prohibition amendment act. Senate passes bill to curb benami transactions pakistan. Undisclosed foreign income and assets and imposition of tax act, 2015. 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.
Substituted for words passed by the adjudicating authority address of adjudicating authority by prohibition of benami property transactions first amendment, rules, 2019, w. The act consisted of only nine sections out of which sections 3, 4 and 5 are significant. The benami transactions prohibition amendment act 2016, which was passed by parliament in august this year, has come into effect. Benami transaction, as per this legislation, means. Benami property transactions and penalties for it bill. The comprehensive amendment bill seeks to amend and strengthen benami transaction prohibition act, 1988 in terms of legal and administrative procedure. The lok sabha has passed comprehensive benami transactions prohibition amendment bill, 2015 to curb domestic black money. Indian tax forms tax collected at source tax deducted at source. A twominute guide to benami transactions prohibition. The practice of having a benami property had been legal for a while. Aug 12, 2016 3 whoever enters into any benami transaction on and after the date of commencement of the benami transactions prohibition amendment act, 2016, shall, notwithstanding anything contained in subsection 2, be punishable in accordance with the provisions contained in chapter vii. Benami transactions prohibition bill 2015 on th may 2015. The benami transaction prohibition act, 1988 hereinafter referred. Benami property bill owners of benami properties may.
After getting passed in both the houses of the parliament, the bill got converted into an act on 11 th august 2016 and was enforced on 1 st november 2016. Although the current law, the benami transaction prohibition act, 1988, prohibits benami transactions, but the provisions of the law have not been operationalised. The bill seeks to amend the benami transactions act, 1988. Prohibition of benami transactions prohibition of benami transactions. The government passed a new benami transactions prohibition amendment bill in 2015. Benami transactions prohibition act, 1988 wikipedia.
1317 1623 755 661 467 627 232 420 106 1146 1642 10 1554 1228 817 536 507 1229 1399 326 1354 1064 672 897 898 257 170 1462 537