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.

The Initiating Officer may hold the property for 90 days from the date of issue of the notice, subject beenami permission from the Approving Authority. Section 6 provides that benamidar shall not re-transfer the property to the beneficial owner or any other person acting on his behalf, meaning thereby that property cannot be transferred by the benamidar to the real owner or beneficiary.

Authorities shall also have the powers to call for information from any person and require production of documents or books of account and also to impound the books or documents.

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. The act bans all benami transactions and gives the government the right to recover property held benami without paying any compensation.

Benami Transactions (Prohibition) Act, – Wikipedia

The Act provides that no person shall enter into any benami transaction or even get any property transferred in his name or hold the same. 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.

B A transaction or an arrangement in respect of a property carried out or made in a fictitious name; or. Scope of the Act Section 3 of the Act provides that no person shall enter into any benami transaction. The Administrator shall issue the notice for the surrender or forcible takeover of possession of the benami property.

However, due to various deficiencies in the Act, the rules required for operationalizing the Act were not framed. It is also important that time limits have been provided under the Act for giving notices and passing the orders by different authorities and accordingly, a time bound procedure has been provided under the Act.

Once a property is confiscated, all rights and title of such property shall vest completely in the central government and no compensation shall be payable. Drag according to your convenience.

Offences and prosecution Apart from confiscation of benami property, sections 53 to 55 of the Act also provide for prosecution of the persons involved in benami transactions. Views Read Edit View history.

All you need to know about benami transactions Bill

For the purpose of implementing the provisions of Act, the Act provides for appointment of following authorities: Accordingly, the Benami Transactions Prohibition Act, was enacted by the Parliament which came into force on 19 May Choose your reason below and click on the Report button.

C A transaction or an arrangement in respect of a property where the owner of the property is not aware of, or, denies knowledge of, such ownership. The Administrator shall have the power to receive and manage the property which has been confiscated.

He is also empowered to take service pdohibition any police officer to assist him in taking the possession of the property. Believe in that, do not believe that you are weak; do not believe that you are half-crazy lunatics, as most of us do nowadays. 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 the real owner before Once the order for confiscation has been passed and the rights and title in such property shall vest absolutely in the Central Government free of all encumbrances and no compensation shall be payable in respect of such confiscation.

All tranaction persons summoned by any of the Authorities appointed under the Act shall be bound to attend in person or through agent as may be directed by the Authority and shall be bound to state the truth and produce such documents as may be required.

The Act had allowed such deals in the name of wife or unmarried daughter. Apart from confiscation of benami property, sections 53 to 55 of the Act also provide for prosecution of the persons involved in benami transactions.

New Benami law to allow property in spouse, siblings’ name

In force Benami Transactions Prohibition Act, is an Act of the Parliament of India that prohibits certain types of financial transactions. The clause, however, excludes genuine family cases like holding of property in the name of spouse or children or in the name of Karta or a member of HUF or in a fiduciary capacity by a trustee, executor, partner prouibition director of a company. Retrieved 26 July Sub-section 1 of section 24 reads as under:. Under the Act, the penalty for entering into benami transactions is imprisonment up to three years, or a fine, or both.

Any property held in benami shall be confiscated by the central government. Thereafter, the Government notified the provisions of the act to come into force from 1 November The Central Government shall appoint the seniormost member to be the Chairperson of the Adjudicating Authority.