Aug 19, 2016 implications of benami transactions prohibition amendment bill. Union cabinet has given its approval to benami transactions prohibition amendment bill, 2015. The new law amended the benami transactions act, 1988 and renamed as the prohibition of benami property transactions pbpt act, 1988. April 16, 2020 leave a comment on benami transactions prohibition act 1988 pdf.
Benami transactions prohibition act a study in comparison. 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. All you need to know about benami transactions bill the hindu. Lok shaba passes benami transactions prohibition amendment. This act may be called the benami transactions prohibition act, 1988. All about benami properties and recent legal developments. 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 benami transactions 1 no person shall enter into any benami transaction. 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 provides for confiscation of benami properties and assets held in the name of another person or under a fictitious name to. The ppt gives details about benami transaction prohibition act. Below mentioned is the explanation of the the next two topics i. Senate passes bill to curb benami transactions pakistan. The benami transactions prohibition amendment bill, 2015 was introduced in lok sabha on may, 2015. Jan 25, 2017 the prohibition of benami property transaction act, 1988 came into force on the 19th day of may, 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. The sum and substance of the provision under section 4 of the benami transaction prohibition murugesa naicker died and others v. Air1992cal67,96cwn591 or providing the consideration. 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 act. 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.
Prohibition of benami transactions prohibition of benami transactions. It is covered under the polity section of the ias exam. Jul 22, 2015 the benami transactions prohibition amendment bill, 2015 prevents all persons from entering into benami transactions. Benami transactions prohibition amendment bill taxreturnwala. Benami transactions prohibition amendment act is an important topic for the upsc civil services exam. Income tax department prohibition of benami property transactions rules, 2016. Law of the land the benami transactions prohibition. Benami transactions prohibition bill 2015 on th may 2015. The paper thus seeks to analyse the meaning of benami transactions and what colour it has taken over these years. A benamidar is a person in whose name a benami property is transferred or held. Benami transactions prohibition amendment act, 2016 mains. Merchant shipping bill, benami transactions prohibition amendment act, 2016 today we will discuss the next two bills. The original law relating to benami transactions was laid down in the benami transactions prohibition act, this act consisted of only.
The act defines benami property, benami transaction and who is benamidar. 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. In real estate, the financial transactions and black money is very rampant. 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. Know all about benami property act pdf pradhan mantri yojana. The benami transactions prohibition amendment bill, 2015 was introduced in lok sabha on may, 2015 by the minister of finance mr. Sabha on may, 2015 is aimed at curbing the circulation of. An act further to amend the benami transactions prohibition act, 1988. The bill was mainly the updated version of the benami transactions bill that was passed in. The government had on wednesday tabled the benami transactions prohibition amendment bill, 2015 in the lok sabha. Any property held in benami will be seized by the government. The undisclosed foreign income and assets imposition of tax bill, 2015. The prohibition of benami property transaction act, 1988 came into force on the 19th day of may, 1988.
The benami transactions prohibition amendment bill, 2015 prs. Union cabinet gives nod to benami transactions prohibition. Benami transactions prohibition act, 1988 is an act of the parliament of india that prohibits. Legislative history of the prohibition of benami transactions act, 1988 1. The benami transactions prohibition amendment act, 2016, designed to curb black money and passed by parliament in august 2016, came into effect. A study of the benami transactions prohibition amendment.
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. Implications and complications in this chapter, researcher deals with why is it beneficial for people to enter into benami transactions and its. The benami transaction is any transaction in which property is transferred to one person for a consideration paid by another person. 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 property has been defined as a property which is the subject matter of a benami transaction. Any property which is subject matter of benami transaction, shall be liable to be. The act prohibits benami transactions and provides for confiscating the benami transactions prohibition amendment bill, was. It extends to the whole of india except the state of jammu and kashmir.
Benami transactions prohibition amendment bill, 2015. Mr veerappa moily submitted its report on the benami transactions prohibition amendment bill, 2015 on april 28, 2016. Jun 05, 2017 crucial bills and amendments for ias prelims 2017. Implications of benami transactions prohibition amendment bill. The current government had introduced benami transactions prohibition amendment bill, 2015 in july 2016 in parliament. For section 2 of the principal act, the following section. As a result, the person in whose name the property is purchased is just a mask of the real beneficiary.
The benami transactions prohibition act property lawsin india at, a website for indian laws. The benami transactions prohibition amendment act, 2016, designed to curb black money and passed by parliament in august 2016, came into effect what is benami property. 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 amending act has even renamed the original act as the prohibition of benami property tr ansactions act, 1988. The act defines a benami transaction as any transaction in which property is transferred to one. The bill seeks to amend the benami transactions prohibition act, 1988 by adding additional provisions that provides for stringent measures against violators in order to curb and check the generation of black money in the country. Prohibition of benami property transactions rules, 2016. The amendments sought to block escape routes for all benami transactions since 1988, and were passed in parliament some months later. The burden of proving the benami transaction is on the claimant. 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. Be it enacted by parliament in the sixtysixth year of the republic of india as follows. Group 8 benami transactions act ppt free download as powerpoint presentation.
Be it enacted by parliament in the sixtyseventh year of the republic of india as follows. Oct 22, 2016 the current government had introduced benami transactions prohibition amendment bill, 2015 in july 2016 in parliament. Benami transactions prohibition act page 11 judgments. The researcher also analyzes whether a new bill, benami transaction prohibition bill, 2015. The benami transactions prohibition amendment act, 2016. Jul 21, 2016 the benami transactions prohibition amendment bill, 2015 was introduced in lok sabha on may, 2015. Parliament has already passed the undisclosed foreign income and assets imposition of tax bill, 2015, popularly known as the black money. The comprehensive amendment bill seeks to amend and strengthen benami transaction prohibition act, 1988 in terms of legal and administrative procedure. The sum and substance of the provision under section 4 of the benami transaction prohibition murugesa naicker died. The benami transaction prohibition act was first enacted in 1988 but has not been notified due to some infirmities. Benami transactions prohibition amendment bill, 2015 1 what is benami. Lok sabha on may, 2015 by finance minister arun jaitley. Prohibition acthereinafter referred to as the actfor short had come into force.
Bill, 2015 for amending the benami transactions prohibition act, 1988. The benami transaction prohibition act, 1988 hereinafter referred as. 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. As a result, the person in whose name the property is purchased is. The bill seeks to amend the benami transactions act, 1988. 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. Lok sabha passed the benami transactions prohibition amendment bill, 2015, that seeks to check generation of black money on july 27. 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. Benami transactions prohibition bill 2011 on 18th august 2011.
Benami transactions prohibition amendment bill, 2015 on april 28, 2016. Benami transactions prohibition act, 1988 wikipedia. 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. 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 amendment act, 2016 lexology. Benami transactions prohibition amendment act, 2016. 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. The act prohibits benami transactions and provides for confiscating benami properties. May, 2015 union cabinet has given its approval to benami transactions prohibition amendment bill, 2015. 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. Evolution of concept of benami transaction in india. The benami transaction prohibition amendment bill, 2015 was introduced before the parliament by the nda government in july 2016. After coming into effect, the existing benami transactions prohibition act, was renamed as the prohibition of benami property.
The bill was introduced in lok sabha on august 10, 2015. Jul 28, 2016 the lok sabha has passed comprehensive benami transactions prohibition amendment bill, 2015 to curb domestic black money. The benami transactions prohibition amendment bill, 2015 introduced in lok sabha on may, 2015, was referred to the committee on 15. The benami transactions prohibition amendment bill, 2015. 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.
It seeks to amend the benami transactions act, 1988, which prohibits benami transactions and provides for confiscating benami properties. 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. Pdf lok sabha of parliament of india passed the muchawaited bill on benami. The benami transactions prohibition amendment bill, 2015 prevents all persons from entering into benami transactions. 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. The benami without a name property refers to property purchased by a person in the name of some other person. 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 micro, small and medium enterprises development amendment bill, 2015. 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.
The benami transactions prohibition amendment bill, 2015 a bill further to amend the benami transactions prohibition act, 1988. 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. This bill has been now passed in both the houses of parliament and has become an act benami transactions prohibition amendment. May, 2015 the benami transactions prohibition amendment bill, 2015 was introduced in lok sabha on may, 2015 by the minister of finance mr. Whoever enters into any benami transaction shall be punishable with an imprisonment. Accordingly, the benami transactions prohibition act, 1988 was enacted by the parliament which came into force on 05. The benami transactions prohibition amendment bill, 2015 which was introduced in lok.