Benami Property Holders Going Anxious
Apr 18, 2017 Legal Guidance
Benami property means any property or assets which are registered without name or fictitious name. With the recent announcement of actions against the Benami property, lawyers around the country are getting flooded with queries.
The Benami Transaction (Prohibition) Amendment Act 2016 allows the government to confiscate any property or assets held in the name of a fictitious person to evade taxes and hide the unaccounted wealth.
Government’s recent sting on black money by demonetization and the Benami amendment has let a lot of people in shock.
Enquiries are being made to the lawyers under fictitious name or through a friend regarding the amendment and possible ways to escape it.
Late October, the income tax department notified the revised provision of the Benami property, a week before the demonetization of Rs 500 and 1000 notes.
The Benami Transaction (Prohibition) Act, 2016 is the revision of the previous act with higher penalty and imprisonment. Any violation of the act is punishable with imprisonment up to 7 years and confiscation of the property from the government without any compensation. The act includes, movable, immovable and tangible and intangible properties.
Fear of the outcome, a lot of people has turned to the lawyers for the legal help. Along with the fight against black money, government’s move on the Benami property has unnerved people holding number of property and assets under fictitious name adding to the unaccounted wealth.
This act will uncover all the deals in which the assets is transferred to one person for the consideration paid or provided by another person. While it is expected that this will uncover all the assets and financial instruments, many queries are also being raised regarding the property transaction.
Government’s effort on tightening the noose on the people hiding black money and holding unaccounted wealth is appreciative and is welcomed by a lot of citizens. Anyone who tries to play the government will face harsh consequences. And end up in serious trouble. However, government need to make sure that the common men are not harassed by the government officials in charge of the same. The defaulters should remain anonymous and government should take steps to stop the officials from misusing their power.
The Benami Transaction (Prohibition) Amendment Act 2016 allows the government to confiscate any property or assets held in the name of a fictitious person to evade taxes and hide the unaccounted wealth.
Government’s recent sting on black money by demonetization and the Benami amendment has let a lot of people in shock.
Enquiries are being made to the lawyers under fictitious name or through a friend regarding the amendment and possible ways to escape it.
Late October, the income tax department notified the revised provision of the Benami property, a week before the demonetization of Rs 500 and 1000 notes.
The Benami Transaction (Prohibition) Act, 2016 is the revision of the previous act with higher penalty and imprisonment. Any violation of the act is punishable with imprisonment up to 7 years and confiscation of the property from the government without any compensation. The act includes, movable, immovable and tangible and intangible properties.
Fear of the outcome, a lot of people has turned to the lawyers for the legal help. Along with the fight against black money, government’s move on the Benami property has unnerved people holding number of property and assets under fictitious name adding to the unaccounted wealth.
This act will uncover all the deals in which the assets is transferred to one person for the consideration paid or provided by another person. While it is expected that this will uncover all the assets and financial instruments, many queries are also being raised regarding the property transaction.
Government’s effort on tightening the noose on the people hiding black money and holding unaccounted wealth is appreciative and is welcomed by a lot of citizens. Anyone who tries to play the government will face harsh consequences. And end up in serious trouble. However, government need to make sure that the common men are not harassed by the government officials in charge of the same. The defaulters should remain anonymous and government should take steps to stop the officials from misusing their power.
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