"The Bill contains elaborate provisions dealing with the definition of benami transaction and benami property, prohibited benami transactions, consequences of entering into a prohibited benami transaction and the procedure for implementing the benami law." the properties held by a coparcener in a Hindu undivided family and property held by a person in fiduciary capacity are excluded from the definition of benami transaction. A coparcener is an individual who holds property inherited from an ancestor, while a fiduciary is an individual who holds property in trust.
A statement issued on bringing the new legislation said, “Further, properties acquired by an individual in the name of spouse, brother or sister or any lineal ascendant or descendant are benami transactions, which are not prohibited. Consequently, they are not subject to penal provisions.”
Benami transactions are a major source of black money and the government is under intense pressure to deal strictly with such transactions. According to the proposed Bill, if "any person enters into a benami transaction in order to defeat the provisions of any law or to avoid payment of statutory dues or to avoid payment to creditors, the beneficial owner, benamidar and any other person who abets or induces any person to enter into such benami transaction, shall be punishable with imprisonment for a term which shall not be less than six months but which may extend to two years and shall also be liable to a fine."
"A benami property shall also be liable for confiscation by the adjudicating authority after the person concerned has been duly heard," the statement said.
The word ‘wife’ needs to be replaced with the word ‘spouse’ and property purchased in the name of certain other family members is to be allowed under the Act. All this would come in for a change as per the new legislation, which would be put up for clearance by Parliament.
A statement issued on bringing the new legislation said, “Further, properties acquired by an individual in the name of spouse, brother or sister or any lineal ascendant or descendant are benami transactions, which are not prohibited. Consequently, they are not subject to penal provisions.”
Benami transactions are a major source of black money and the government is under intense pressure to deal strictly with such transactions. According to the proposed Bill, if "any person enters into a benami transaction in order to defeat the provisions of any law or to avoid payment of statutory dues or to avoid payment to creditors, the beneficial owner, benamidar and any other person who abets or induces any person to enter into such benami transaction, shall be punishable with imprisonment for a term which shall not be less than six months but which may extend to two years and shall also be liable to a fine."
"A benami property shall also be liable for confiscation by the adjudicating authority after the person concerned has been duly heard," the statement said.
The word ‘wife’ needs to be replaced with the word ‘spouse’ and property purchased in the name of certain other family members is to be allowed under the Act. All this would come in for a change as per the new legislation, which would be put up for clearance by Parliament.
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