Is Benami transaction legal in India?
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Is Benami transaction legal in India?
In Indian laws (in terms of property law), the term Benami transaction is used to connote transfer of a property wherein the transfer is made under a fictitious name or under the name of a third party. Though Benami Transactions was not recognised in England, their validity was upheld in India.
What is Benami Property India?
Benami Transactions (Prohibition) Act, 1988 – Meaning & Provisions. The term ‘Benami’ in Hindi translates to ‘no name’ or ‘without name’. Benami transactions or Benami property would be one where a person’s own name is not used but the name of another person or a fictitious person is used instead.
What is Benami property Quora?
Benami property is basically an asset which is purchased in another person’s name. A person lends his or her name to the asset purchased by another person. It could be property, banks accounts of fixed deposits. Usually those persons who do not want to come under the scanner purchase properties in other people’s names.
Why is Benami illegal?
The act defines a ‘benami’ transaction as any transaction in which property is transferred to one person for consideration paid by another person….Benami Transactions (Prohibition) Act, 1988.
The Benami Transactions (Prohibition) Act, 1988 | |
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Enacted by | Parliament of India |
Commenced | 19 May 1988 |
Status: In force |
How do I inform Benami property?
The complaint can be filed through a link on the e-filing website of the income tax department https://www.incometaxindiaefiling.gov.in/ under the head “File complaint of tax evasion/undisclosed foreign asset/ benami property”.
What is new benami law?
The New Act expands the scope of the law, casts a negative burden/onus on a person to prove that a property is not “benami property”, creates disabilities such as immediate attachment and subsequent confiscation and most importantly attracts criminal action.
Can I buy benami property?
Under the new law, if a person buys a benami property from a benamidar (property original owner), the government could attach such property, even if you have paid consideration fee from declared and established sources.
How do I complain about benami property?
How do I report a Benami property?
As per the Benami Transactions (Prohibition) Amendment Act, 2016, a Benami Property complaint can be filed to the Initiating Officer (IO), who can either be a Deputy Commissioner or an Assistant Commissioner as defined in the Income Tax Act, 1961.
How do I report a benami property in India?
Where can I complain against benami property?
The public can now file a Tax Evasion Petition through a link on the e-filing website of the Department https://www.incometaxindiaefiling.gov.in/ under the head “File complaint of tax evasion/undisclosed foreign asset/ benami property”.