Monday, August 1, 2016

Stringent law to deal with Benami Properties - 7 things you should know

n an attempt to restrain the generation of black money in domestic market, the Lok Sabha has approved the Benami transactions Prohibition (Amendment) Bill.
 
Key takeaways from Bemani amendment bill are as follows:
 
1) It empowers the Government to confiscate Benami properties held in the name of another person or under a fictitious name to avoid taxation and conceal wealth.
 
2) The person found guilty of Benami transaction may have to face rigorous imprisonment for a period not less than one year and which may be extended to seven years. In addition to imprisonment, there would be a penalty of 25 percent which will be calculated on the basis of fair market value of the property.
3) Now following transactions would also be treated as Benami transaction:
a) Purchase of property by any person in the name of his wife or unmarried daughter

b) The securities held by depository –
As a registered owner under the Depository act, or
As participant as an agent of a depository.
 
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