The Benami Transactions (Prohibition) Amendment Act 2016

Question 1

Ministry

Answer 1

Mo Finance

Question 2

Provsions

Answer 2

(i) amend the definition of benami transactions,
(ii) establish of an Appellate Tribunal to deal with benami transactions, and
(iii) specify the penalty for entering into benami transactions.

Question 3

What is the definition now

Answer 3

Bill defines benamidar as the person in whose name the benami property is held or transferred, and a beneficial owner as the person for whose benefit the property is being held by the benamidar.

(i) the transaction is made in a fictitious name,
(ii) the owner is not aware of denies knowledge of the ownership of the property, or
(iii) the person providing the consideration for the property is not traceable.

Question 4

What is the procedure

Answer 4

(i) Initiating Officer=Hold property for 90 dyas
(ii) Approving Authority= examine all documents and evidence relating to the matter and then pass an order on whether or not to hold the property as benami
(iii) Administrator=Administrator will receive and manage the property in a manner and subject to conditions as prescribed.
(iv) Adjudicating Authority.= hear appeals against any orders passed by the Adjudicating Authority. Appeals against orders of the Appellate Tribunal will lie to the high court

Question 5

What is provisions for penalty

Answer 5

1 rigorous imprisonment of one year up to seven years,
and a fine which may extend to 25% of the fair market
value of the benami property.
2 penalty for providing false information to be rigorous
imprisonment of six months up to five years, and a
fine which may extend to 10% of the fair market value
of the benami property.