Benami property Act 2016 Transactions : Key 5 Points..!


Benami Property Act 2016 Transactions : Key 5 Points..!


1. A benami transaction is one where a property is held by one person and the amount for it is paid by another. The transaction is done to benefit the person who pays for the property either directly or indirectly.

2. The Prohibition of Benami Property Transactions Act, 1988, is an amendment of the older Benami Transactions (Prohibition) Act, 1988, and has come into force from 1 November 2016.

3. It prohibits illegal benami transactions, and provides imprisonment up to seven years and fine for violation of the Act which may extend to 25% of the fair market value of the benami property.

4. The new law provides for authorities to conduct inquiries on any benami Transactions.

These are, the Initiating Officer, Approving Authority, Administrator, and Adjudicating Authority.

5. Under the new law, an Appellate Tribunal will hear appeals against orders passed by the Adjudicating Authority.Appeals against orders of the Tribunal, in turn, will be heard by the High Court.

Courtesy : Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.

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