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. The ppt gives details about benami transaction prohibition act. All you need to know about benami transactions bill the. Assets of any kind movable, immovable, tangible, intangible, any right or interest, or legal documents. Benami transactions prohibition act section 4 judgments. Aug 12, 2016 the researcher also analyzes whether a new bill, benami transaction prohibition bill, 2015. The benami transactions prohibition amendment bill, 2015 was introduced in the lok sabha on th may, 2015 to amend the benami transactions prohibition act, 1988.
Benami transactions prohibition act, 1988 wikipedia. Benami transactions prohibition act, 1988 is an act of the parliament of india that prohibits certain types of financial transactions. The benami transactions prohibition amendment bill, 2015. All about benami transaction prohibition amendment act,2016 by lavina bhargava download pdf the author, lavina bhargava is 3rd year student of nmims, kirit p. Benami transactions prohibition act, 2017 v of 2017, the federal government is pleased to make the following rules, namely. The benami transaction prohibition act was first enacted in 1988 but has not been notified due to some infirmities. To address these deficiencies, several years later, in 2011, the government of india introduced benami transactions prohibition bill, 2011 and 2015 after attacking black money by demonetisation announced on november 8th 2016 of high value currency notes, prime minister narendra modi is all set to take on benami properties to check. The benami transactions prohibition amendment act, 2016 is an amendment of the older benami transactions prohibition act 1988. Below mentioned is the explanation of the the next two topics i. Air1992cal67,96cwn591 or providing the consideration. Benami transactions prohibition act of 1988 and the benami property bill of 2015 in india, the fight against the illegal or benami properties started back in the year 1988.
It also stated that properties held benami could be acquired free of cost. Jan 02, 2017 benami property has been defined as a property which is the subject matter of a benami transaction. As regards curbing domestic black money, a new and more comprehensive benami transactions prohibition bill will be introduced in the current session of the parliament. Mr veerappa moily submitted its report on the benami transactions prohibition amendment bill, 2015 on april 28, 2016. Property held in the name of the children or spouse through know income sources. The benami transactions prohibition amendment act, 2016. The amendment bill, 2015 was first introduced in the lok sabha last year, on may, 2016 by finance minister arun jaitley. Parliament has already passed the undisclosed foreign income and assets imposition of tax bill, 2015, popularly known as the black money bill, to nab those stashing unaccounted money abroad. It seeks to amend the benami transactions act, 1988, which prohibits benami transactions and provides for confiscating benami properties. Group 8 benami transactions act ppt free download as powerpoint presentation. Analysis of new stringent law to prohibit benami transactions. All you need to know about benami transactions amendment. Money undisclosed foreign income and assets and imposition of tax act, 2015, will help. 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.
Benami transactions tracing the evolution of benami law in. Whoever enters into any benami transaction shall be punishable with an imprisonment. Prohibition of benami transactions prohibition of benami transactions. The benami transactions prohibition amendment bill, 2015 was passed by lok sabha on july 27 and rajya sabha on august 2. Benami transactions prohibition amendment act, 2016. Feb 01, 2018 how new law changes the definition of benami assets a person booking a property in the name of her father can find herself on the wrong side of the law if tax officials are convinced that father does not use the property. Benami transactions prohibition act a study in comparison.
In that year, an act named bta was passed to make the transaction of properties and register them to others name. The benami transaction prohibition act, 1988 hereinafter referred as. If actslaw could make india law abiding,then by this timethere should be no black money,no corruption,no crime. The benami transactions prohibition act, 2016 national.
The bill provides for confiscation of benami properties and assets held in the name of another person or under a fictitious name to avoid taxation and conceal illgotten wealth. 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. Lok sabha on may, 2015 by finance minister arun jaitley. 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.
Jul 30, 2016 the benami transactions prohibitionamendment bill, 2015, interalia, provides for the following namely. Implications and complications in this chapter, researcher deals with why is it beneficial for people to enter into benami transactions and its adverse impact on the economy and society at large. Benami property bill soon, pan needed for over rs 1 lakh. It is covered under the polity section of the ias exam. Key highlights of benami transactions prohibition amendment. Jul 21, 2016 the benami transactions prohibition amendment bill, 2015 was introduced in lok sabha on may, 2015. 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 transactions prohibition amendment bill, 2015 was introduced in lok sabha on may, last year by finance minister arun jaitley. A study of the benami transactions prohibition amendment act. 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. Benami properties it is essentially means property without a name. After the modi government came to power, finance minister arun jaitley introduced the amended bill with 71 sections in the lok sabha on may, 2015. As a result, the person in whose name the property is. The act defines a benami transaction as any transaction in which property is transferred to one person for a consideration paid by another person.
An act further to amend the benami transactions prohibition act, 1988. The act defines a benami transaction as any transaction in which property is transferred to one. On th may, 2015 the benami transactions prohibition amendment bill, 2015. Article deterrences of benami transaction prohibition amendment act, 2016, an evaluation dr. The systemic problems need to be addressed for re to stop being the epicenter of cash transaction and benami transactions. New benami law put on fast track the economic times. The amendments sought to block escape routes for all benami transactions since 1988, and were passed in parliament some months later. Benami transactions prohibition amendment bill, 2015. However, the hammer of the law, if literally interpreted, also adversely affects innocent persons who enter into genuine 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. Benami transactions bill, 2015 linkedin slideshare. 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 income declaration scheme, which is currently open, gives benami property holders time until september 30 to come clean after paying 45% tax. The act prohibits benami transactions and provides for confiscating benami. The amendment act has come into force with effect from 1st november, 2016. The comprehensive amendment bill seeks to amend and strengthen benami transaction prohibition act, 1988 in terms of legal and administrative procedure.
The property is held for the benefitdirect or indirectof the person paying the amount. 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. Know all about benami property and benami transactions. The act prohibits benami transactions and provides for confiscating benami properties. The prohibition of benami property transactions act 1988 transactions act 1988 by 10by 10thtthhth august 2016 amendment 2016 amendment 72 sections72 sections prohibition of prohibition of benamibenamibenamiproperty transactions property transactions rules 2016 the amended act and rules effective from 1stssttst november 2016. It extends to the whole of india except the state of jammu and kashmir. A benamidar is a person in whose name a benami property is transferred or held. All you need to know about benami transactions bill the hindu. We use your linkedin profile and activity data to personalize ads and to show you more relevant ads. All the rights and titles shall vest, free of all encumbrances, in the. Benami transactions prohibition act, 1988 is an act of the parliament of india that prohibits.
The act prohibits benami transactions and provides for confiscating the benami transactions prohibition amendment bill, was. Benami properties a new target on the radar cakart. The government had on wednesday tabled the benami transactions prohibition amendment bill, 2015 in the lok sabha. The benami transactions prohibition amendment bill, 2015 was introduced in lok sabha on may, 2015. Jun 29, 2017 the benami transactions prohibition amendment act, 2016 is the outcome of the benami transactions prohibition amendment bill, 2015, which was introduced in the lok sabha on may. Under section 511 of the bill, where any person enters into a benami transaction or holds benami property in order to defeat the provisions of any law or to avoid payment of statutory dues or to. On perusal of the 28th report of the standing committee on finance, dated april 2016, on the benami transactions prohibition amendment bill, 2015, it can be seen that the reason behind amending the 1988 act instead of repealing the said act, was to include all the benami transactions under its ambit on which no action was taken under the 1988. Legislative history of the prohibition of benami transactions act, 1988 1. The paper thus seeks to analyse the meaning of benami transactions and what colour it has taken over these years. 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. Following transactions are not considered as benami transactions and are excluded from the scope of the benami transaction prohibition bill, 2015.
Benami transactions prohibition amendment act is an important topic for the upsc civil services exam. Benami transactions prohibition amendment act, 2016 lexology. Prohibition amendment bill, 2015 was introduced in. The amending act has even renamed the original act as the prohibition of benami property tr ansactions act, 1988. Jun 05, 2017 crucial bills and amendments for ias prelims 2017. Benami transactions prohibition amendment bill, 2015 1 what is benami. 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. This law will enable confiscation of benami property and provide for prosecution, thus blocking a major avenue for generation and holding of black money in the form. The benami transactions prohibition amendment bill, 2015 was introduced in lok sabha on may, 2015 by the minister of finance mr. Merchant shipping bill, benami transactions prohibition amendment act, 2016 today we will discuss the next two bills. Lok shaba passes benami transactions prohibition amendment.
Lok sabha passed the benami transactions prohibition amendment bill, 2015, that seeks to check generation of black money on july 27. Amendment in the benami transactions prohibition act. 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. All about benami transaction prohibition amendment act,2016. The benami transactions prohibition amendment act 2016 imposes draconian consequences on persons seeking to evade the law by holding property by illegitimate means. Implication of benami transaction bill iref indian real. Then referred to by a standing committee on finance. Be it enacted by parliament in the sixtysixth year of the republic of india as follows. Senate passes bill to curb benami transactions pakistan. Benami transactions prohibition amendment bill taxreturnwala. Guide to the prohibition of benami property transactions act. Jan 25, 2017 the prohibition of benami property transaction act, 1988 came into force on the 19th day of may, 1988. Dec 20, 2016 the benami transactions prohibition amendment act, 2016hereinafter referred to as the act received the presidents assent on august 10, 2016 and has come into force from november 1, 2016.
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. A study of the benami transactions prohibition amendment. 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. The act defines benami property, benami transaction and who is. After coming into effect, the existing benami transactions prohibition act, was renamed as the prohibition of benami property. How new law changes the definition of benami assets. The bill provides for confiscation of benami properties and assets held in the name of another person or under a fictitious name to. The law and practice of the prohibition of benami property. By clearing the 2015 amendment bill, the implementation of the provisions to control benami transaction is hoped to be achieved efficiently. Lok sabha passes benami transactions prohibition amendment bill 2015 the amendments will strengthen the bill in terms of legal and administrative procedures, and to effectively prohibit benami. Be it enacted by parliament in the sixtyseventh year of the republic of india as follows. Bill to provide for prohibition of holding property in benami.
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 bill intends to amend the definition of benami transactions and establish adjudicating authorities besides. Benami transactions prohibition act page 11 judgments. Case reference of benami transaction free legal advice. The bill seeks to amend the benami transactions act, 1988. 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.
Evolution of concept of benami transaction in india. Any transaction within the definition of benami transaction shall attract consequential action under the benami transactions prohibition act, 1988 after the enactment of. Committee, present this twentyeighth report on the benami transactions prohibition amendment bill, 2015. What is benami property bill owners of benami properties. The bill was introduced in lok sabha on august 10, 2015. Pdf lok sabha of parliament of india passed the muchawaited bill on. A shoutout to the taxcompliant vsv is expected to resolve a major part of direct tax litigations worth about rs 4. Parliament has already passed the undisclosed foreign income and assets imposition of tax bill, 2015, popularly known as the black money bill. Legislation on benami transactions in india a critical.