The benami transactions prohibition act, 2016 national. The benami transactions prohibition amendment bill, 2015 a bill further to amend the benami transactions prohibition act, 1988. Pdf lok sabha of parliament of india passed the muchawaited bill on. All you need to know about benami transactions amendment. The amendment bill, 2015 was first introduced in the lok sabha last year, on may, 2016 by finance minister arun jaitley. 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. 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. Evolution of concept of benami transaction in india. A study of the benami transactions prohibition amendment act. Benami transactions prohibition act page 11 judgments.
It is covered under the polity section of the ias exam. 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. The bill seeks to amend the benami transactions act, 1988. Guide to the prohibition of benami property transactions act. Benami transactions prohibition act a study in comparison. Benami transactions prohibition amendment act, 2016. The government had on wednesday tabled the benami transactions prohibition amendment bill, 2015 in the lok sabha. The bill was introduced in lok sabha on august 10, 2015. However, the hammer of the law, if literally interpreted, also adversely affects innocent persons who enter into genuine transactions. Benami transactions prohibition act section 4 judgments. 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.
Article deterrences of benami transaction prohibition amendment act, 2016, an evaluation dr. The bill intends to amend the definition of benami transactions and establish adjudicating authorities besides. 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. Lok shaba passes benami transactions prohibition amendment. 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. Benami transactions prohibition amendment bill, 2015 1 what is benami.
The income declaration scheme, which is currently open, gives benami property holders time until september 30 to come clean after paying 45% tax. As a result, the person in whose name the property is. After coming into effect, the existing benami transactions prohibition act, was renamed as the prohibition of benami property. 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. The amendments sought to block escape routes for all benami transactions since 1988, and were passed in parliament some months later. Property held in the name of the children or spouse through know income sources. 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. 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.
What is benami property bill owners of benami properties. A study of the 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. Legislation on benami transactions in india a critical. The comprehensive amendment bill seeks to amend and strengthen benami transaction prohibition act, 1988 in terms of legal and administrative procedure. 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. 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 act prohibits benami transactions and provides for confiscating benami properties. Benami transactions prohibition amendment act, 2016 lexology. 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. Prohibition of benami property transaction act icsi. 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, 2017 v of 2017, the federal government is pleased to make the following rules, namely. The benami transactions prohibition amendment act, 2016. The benami transactions prohibition amendment act, 2016 is an amendment of the older benami transactions prohibition act 1988. Any transaction within the definition of benami transaction shall attract consequential action under the benami transactions prohibition act, 1988 after the enactment of.
The benami transactions prohibition amendment bill, 2015 was introduced in lok sabha on may, 2015. Benami transactions bill, 2015 linkedin slideshare. Benami transactions prohibition amendment act is an important topic for the upsc civil services exam. Be it enacted by parliament in the sixtyseventh year of the republic of india as follows. 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. Benami transactions prohibition act, 1988 wikipedia. 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 benami transactions prohibition amendment act 2016 imposes draconian consequences on persons seeking to evade the law by holding property by illegitimate means. Merchant shipping bill, benami transactions prohibition amendment act, 2016 today we will discuss the next two bills. New benami law put on fast track the economic times. All you need to know about benami transactions bill the hindu. The act defines a benami transaction as any transaction in which property is transferred to one.
The amending act has even renamed the original act as the prohibition of benami property tr ansactions act, 1988. Whoever enters into any benami transaction shall be punishable with an imprisonment. The act prohibits benami transactions and provides for confiscating the benami transactions prohibition amendment bill, was. Following transactions are not considered as benami transactions and are excluded from the scope of the benami transaction prohibition bill, 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. It extends to the whole of india except the state of jammu and kashmir. Aug 12, 2016 the researcher also analyzes whether a new bill, benami transaction prohibition bill, 2015. Jun 05, 2017 crucial bills and amendments for ias prelims 2017. We use your linkedin profile and activity data to personalize ads and to show you more relevant ads. Jul 21, 2016 the benami transactions prohibition amendment bill, 2015 was introduced in lok sabha on may, 2015. Legislative history of the prohibition of benami transactions act, 1988 1. The benami transaction prohibition act, 1988 hereinafter referred as. 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 act defines benami property, benami transaction and who is. The ppt gives details about benami transaction prohibition act. The property is held for the benefitdirect or indirectof the person paying the amount. Jan 25, 2017 the prohibition of benami property transaction act, 1988 came into force on the 19th day of may, 1988. Then referred to by a standing committee on finance. Implication of benami transaction bill iref indian real.
Case reference of benami transaction free legal advice. 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. 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. Parliament has already passed the undisclosed foreign income and assets imposition of tax bill, 2015, popularly known as the black money bill. Assets of any kind movable, immovable, tangible, intangible, any right or interest, or legal documents. The amendment act has come into force with effect from 1st november, 2016. If actslaw could make india law abiding,then by this timethere should be no black money,no corruption,no crime. Committee, present this twentyeighth report on the benami transactions prohibition amendment bill, 2015. The benami transactions prohibition amendment bill, 2015 was introduced in lok sabha on may, 2015 by the minister of finance mr. The benami transaction prohibition act was first enacted in 1988 but has not been notified due to some infirmities. The benami transactions prohibition amendment bill, 2015 was introduced in lok sabha on may, last year by finance minister arun jaitley. 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. 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 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.
A shoutout to the taxcompliant vsv is expected to resolve a major part of direct tax litigations worth about rs 4. Air1992cal67,96cwn591 or providing the consideration. 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. Bill to provide for prohibition of holding property in benami. A benamidar is a person in whose name a benami property is transferred or held.
Amendment in the benami transactions prohibition act. Benami properties a new target on the radar cakart. The act prohibits benami transactions and provides for confiscating benami. Be it enacted by parliament in the sixtysixth year of the republic of india as follows. Mr veerappa moily submitted its report on the benami transactions prohibition amendment bill, 2015 on april 28, 2016. Benami property bill soon, pan needed for over rs 1 lakh. 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. 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. 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. Lok sabha on may, 2015 by finance minister arun jaitley. The act defines a benami transaction as any transaction in which property is transferred to one person for consideration paid by another person.
Money undisclosed foreign income and assets and imposition of tax act, 2015, will help. 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. Jul 30, 2016 the benami transactions prohibitionamendment bill, 2015, interalia, provides for the following namely. Benami transactions prohibition act, 1988 is an act of the parliament of india that prohibits. The benami transactions prohibition amendment bill, 2015 was passed by lok sabha on july 27 and rajya sabha on august 2. Know all about benami property and benami transactions. All you need to know about benami transactions bill the. An act further to amend the benami transactions prohibition act, 1988. The paper thus seeks to analyse the meaning of benami transactions and what colour it has taken over these years. 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 prohibition amendment bill, 2015. Benami transactions prohibition amendment bill taxreturnwala.
Benami transactions tracing the evolution of benami law in. By clearing the 2015 amendment bill, the implementation of the provisions to control benami transaction is hoped to be achieved efficiently. Analysis of new stringent law to prohibit benami transactions. 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 benami transactions prohibition amendment bill, 2015. It also stated that properties held benami could be acquired free of cost. In that year, an act named bta was passed to make the transaction of properties and register them to others name. The law and practice of the prohibition of benami property.
How new law changes the definition of benami assets. Senate passes bill to curb benami transactions pakistan. It seeks to amend the benami transactions act, 1988, which prohibits benami transactions and provides for confiscating benami properties. All about benami transaction prohibition amendment act,2016. Prohibition of benami transactions prohibition of benami transactions. Key highlights of benami transactions prohibition amendment. 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. Benami properties it is essentially means property without a name. Below mentioned is the explanation of the the next two topics i. 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 systemic problems need to be addressed for re to stop being the epicenter of cash transaction and benami 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.
Jul 28, 2016 the lok sabha has passed comprehensive benami transactions prohibition amendment bill, 2015 to curb domestic black money. 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. Group 8 benami transactions act ppt free download as powerpoint presentation. The bill provides for confiscation of benami properties and assets held in the name of another person or under a fictitious name to. On th may, 2015 the benami transactions prohibition amendment bill, 2015. Prohibition amendment bill, 2015 was introduced in. 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 certain types of financial transactions.
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