The act seeks to amend older benami transactions prohibition act, 1988. 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. Prohibition of benami property transactions rules, 2016. The current government had introduced benami transactions prohibition amendment bill, 2015 in july 2016 in parliament. Benami property and benami transactions prohibition. 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. However, eventually these were often used to resort to furthering illegal or questionable objects.
Benami transactions prohibition amended act, 2016 iref. Benami transaction is a transaction where the property includes land, gold, intangible or tangible, any legal document is purchased in the name of person who has not paid for it. The bill was introduced in lok sabha on august 10, 2015. Lok sabha on may, 2015 by finance minister arun jaitley. The benami transactions prohibition amendment act, 2016 is an amendment of the older benami transactions prohibition act 1988. Prohibition of benami property transaction act, 1988 is now substantially amended by benami transactions prohibition amendment act, 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. Benami transactions prohibition amendment act, 2016 mains. 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.
The new law amended the benami transactions act, 1988 and renamed as the prohibition of benami property transactions pbpt act, 1988. 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. Know all about benami property act pdf pradhan mantri yojana. Chapter prohibition of benami transactions prohibition of benami transactions. Guide to the prohibition of benami property transactions act. Jan 02, 2017 benami property has been defined as a property which is the subject matter of a benami transaction. A shoutout to the tax compliant vsv is expected to resolve a major part of direct tax litigations worth about rs 4. Aug 19, 2016 implications of benami transactions prohibition amendment bill. In real estate, the financial transactions and black money is very rampant. The act defines a benami transaction as any transaction in which property is transferred to one person for a consideration paid by another person. The bill seeks to amend the benami transactions prohibition act, 1988 referred hereto as the principal act by introducing following amendments in the said act inserts a new chapter i before section 1 of the principal act, which states that now the principal act shall be called as.
Substituted for words passed by the adjudicating authority address of adjudicating authority by prohibition of benami property transactions first amendment, rules, 2019, w. Prohibition of benami property transactions rules, 2016 form 3 see rule101. The current government had introduced benami transactions prohibition amendment bill in july 2016 in parliament. Benami transactions prohibition amendment bill, 2015 1 what is benami. The benami transactions prohibition amendment act, 2016. Key highlights of benami transactions prohibition amendment. The paper thus seeks to analyse the meaning of benami transactions and what colour it has taken over these years. All you need to know about benami transactions bill the hindu. Benami transactions prohibition act a study in comparison. The benami transactions prohibition amendment bill, 2015 a bill further to amend the benami transactions prohibition act, 1988. Amendments to the benami transactions prohibition prs india. Certain amendments to the income tax act, 1961 to account for.
Senate passes bill to curb benami transactions pakistan. Quick guide for benami property transaction prohibition. Mr veerappa moily submitted its report on the benami transactions prohibition amendment bill, 2015 on may, 2015. The benami transactions prohibition amendment bill, 2015 introduced in lok sabha on may, 2015, was referred to the committee on 15 may, 2015 for examination and report thereon, by the speaker, lok sabha under rule 331e of the rules of procedure and conduct of. 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. On th may, 2015 the benami transactions prohibition amendment bill, 2015 hereinafter. The benami transaction prohibition act, 1988 hereinafter referred as the act. All you need to know about benami transactions amendment.
As a result, the person in whose name the property is purchased is just a mask of the real beneficiary. 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. Then referred to by a standing committee on finance. Mar 17, 2010 benami transactions prohibition act, 1988.
Guide to the prohibition of benami property transactions. 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 amendment bill, 2015 was first introduced in the lok sabha last year, on may, 2016 by finance minister arun jaitley. According to merriam webster dictionary the term benami implies made, held, done, or transacted in the name of another person used in hindu law to designate a transaction, contract, or property that is made or held under a name that is fictitious or is that of a third party who holds. Substituted for words passed by the or adjudicating authority by prohibition of benami property transactions.
Merchant shipping bill, benami transactions prohibition amendment act, 2016. Benami transactions prohibition amendment act, 2016 gktoday. Reference was made to parliamentary committee for its recommendations on 15th may, 2015. Analysis of new stringent law to prohibit benami transactions. Benami transaction prohibition act and its impact on law. The benami transactions prohibition amendment bill, 2015 was introduced in lok. Prohibition amendment bill, 2015 was introduced in.
By clearing the 2015 amendment bill, the implementation of the. The act consisted of only nine sections out of which sections 3, 4 and 5 are significant. However, the hammer of the law, if literally interpreted, also adversely affects innocent persons who enter into genuine transactions. The benami transactions prohibition amendment bill, 2015 was introduced in lok sabha and the bill seeks to amend the benami transactions act, 198 which prohibits benami transactions and allows confiscation of benami properties.
Prohibition and confiscation 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. Benami transactions prohibition bill, 1988 was introduced in the rajya sabha on the 31st. The benami transactions prohibition amendment act 2016 imposes draconian consequences on persons seeking to evade the law by holding property by illegitimate means. A benamidar is a person in whose name a benami property is transferred or held. Group 8 benami transactions act ppt free download as powerpoint presentation. 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. The bill intends to amend the definition of benami transactions and establish adjudicating authorities besides. Jul 21, 2016 the benami transactions prohibition amendment bill, 2015 was introduced in lok sabha on may, 2015. Benami transactions prohibition act, 1988 is an act of the parliament of india that prohibits certain types of financial 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 was introduced in lok sabha on may, 2015 by the minister of finance mr.
The benami transaction bill was amended in the year 2015 and it was primarily done for the purpose of tracing the illegal transactions and in turn, confiscating them. Benami transactions prohibition act, 1988 wikipedia. Be it enacted by parliament in the sixtysixth year of the republic of india as follows. Tax evasion black money corrupt practices ca sagar tilak sagar. The bill seeks to amend the benami transactions prohibition act, 1988 to. 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. Benami transactions prohibition bill 2015 on th may 2015. 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. All you need to know about benami transactions bill the. 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. Amendments to the benami transactions prohibition amendment.
The real estate bill which regulates the market and with this benami transactions prohibition bill, the government can control the layering that happens, where lot of black money is converted to white. 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. The amending act has even renamed the original act as the prohibition of benami property tr ansactions act, 1988.
Benami transactions prohibition act, 1988 is an act of the parliament of india that prohibits. For many people, the term benami property is a mystery. Benami transactions prohibition act, 1988 wikimili. As a result, the person in whose name the property is purchased is. Undisclosed foreign income and assets and imposition of tax act, 2015. By clearing the 2015 amendment bill, the implementation of the provisions to control benami transaction is hoped to be achieved efficiently. In this bill, the word is used to define a transaction in which the real beneficiary is not the one in whose name a property has been purchased. The bill seeks to amend the benami transactions act, 1988. The benami transactions prohibition amendment bill, 2015. Benami property has been defined as a property which is the subject matter of a benami transaction. Benamitransactions prohibition bill 2015 on th may 2015 president assent on 10 th august 2016 5 ca sagar tilak sagar. 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. Authorities, which have been specified, are empowered to attach.
Jun 05, 2017 crucial bills and amendments for ias prelims 2017. From the old concept to the new bill nishi shah1 abstract. Whoever enters into any benami transaction on and after the date of commencement of the benami transactions prohibition amendment act, 2016, shall, be punishable in accordance with the provisions contained in chapter vii section 5. The benami transactions prohibition amendment bill, 2015 was introduced in lok sabha on may, last year by finance minister arun jaitley. Benami transactions prohibition amendment bill, 2015 on april 28, 2016. 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. 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.
Implications of benami transactions prohibition amendment bill. In order to effectively prohibit benami transactions, the benami transactions prohibition amended act of 2016 came into operation after the amendment. The bill was mainly the updated version of the benami transactions bill that was passed in the lower house of the parliament in the year 1998. Benami transactions refer to those transactions in which the real beneficiary of the transaction and the person in whose name the transaction is made are different, specifically transactions relating to properties.
The benami transactions prohibition amendment act, 2016, designed to curb black money and passed by parliament in august 2016, came into effect. Benami transactions prohibition amendment act, 2016. 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. Last month, the lok sabha passed a comprehensive benami transactions prohibition amendment bill, 2015, with the intent of bringing unaccounted money into the system, as well as seizing benami property and prosecuting those indulging in such activities. A study of the benami transactions prohibition amendment. Over a dozen amendments were made to the benami transactions prohibition bill, 2016, by the senate standing committee on finance and revenue.
Oct 22, 2016 the current government had introduced benami transactions prohibition amendment bill, 2015 in july 2016 in parliament. The benami transactions prohibition amendment bill, 2015 was introduced in lok sabha on may, 2015. Benami transactions prohibition amendment act is an important topic for the upsc civil services exam. The act prohibits benami transactions and provides for confiscating of. Benami transactions prohibition amendment bill, 2015. 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. The act defines benami property, benami transaction and who is benamidar. All about benami properties and recent legal developments. Below mentioned is the explanation of the the next two topics i. This statement on benami property from our prime minister forayed into reality with the passage of benami transactions prohibition amendment act, 2016. The act defines a benami transaction as any transaction in which property is transferred to one. Evolution of concept of benami transaction in india. It seeks to amend the benami transactions act, 1988, which prohibits benami transactions and provides for confiscating benami properties.
The act prohibits benami transactions and provides for confiscating benami properties. The benami transaction prohibition amendment bill, 2015 was introduced before the parliament by the nda government in july 2016. Substituted for words passed by the or adjudicating authority. The benami transactions prohibition amendment bill, 2016 was introduced in lok sabha on th may, 2015. The act defines a benami transaction as any transaction in which property is transferred to one person for consideration paid by another person. Pdf lok sabha of parliament of india passed the muchawaited bill on benami. It is covered under the polity section of the ias exam. 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. The term benami has its origin from the persian language which implies without a name.
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