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Overview of the
Benami Property Transaction Act, 1988
16-11-2024
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Definition of Benami
=without name or
=actual name
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(9) Benami transaction means;
==trfd to or is held by ‘A’ and the consideration is by ‘B’ and the property is held for the benefit of ‘B’ except the transaction of Karta/HUF; Fiduciary capacity; Spouse or Child; Brother/Sister lineal ascendant/ descendant..
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….2(9)…
Transaction/arrangement i.r.o. property
(B) In fictitious Name;
(C) Where Owner of the property is unknown;
(D) Where consideration provider is untraceable or fictitious name.
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(26) ‘Property Means’
Any asset- movable/immovable, tangible /intangible, corporeal/incorporeal & includes any
–right or interest or legal/ document instrument evidencing title/interest;
-converted property; or Proceeds from the property
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Chapter-II
(3) 2. Prohibition of benami transaction
{Imprisonment upto 3 years or with fine or both-(3) Post 2016 transactions…as per Chapter VII.}
(4) No right to recover property held benami.
(5) Benami property liable to be confiscated.
(6) Prohibition on re-transfer of property by benamidar.
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(7) Adjudicating Authority
{It is the competent authority u/s 5 (1) of SFEMA, 1976}
(18) Authorities and Jurisdiction
{Initiating Officer, Approving Authority, Administrator and the Adjudicating Authority}
(19) Powers of the Authorities.
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(20) Certain officers to assist in inquiry etc….CBDT, CBIC, Narcotics, RBI etc.
(21) Power to call for information.
(22) Power to impound documents.
(23) Power of authority to conduct inquiry.
{IO to hold inquiry after AA approval}.
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(24) Notice and attachment of property involved in benami transaction.
{Notice both to Benamidar and the Beneficial owner but after recording reasons.
(3) Prov. attachment after approval-Gr. alienation
(4) Within 90 days pass order to continue attachment but with AA approval and till passing of order by Adj. Authority}.
(5) Where IO orders continuation within 15 days refer it to Adj. Auth.}
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(25) Manner of service of Notice
(26) Adjudication of benami property.
{Notice to all including interested persons.
=Adjudication within 1 year of the end of the month of the reference of the IO}
(27) Confiscation and vesting of benami property by the Adj. Authority subjected to appeal.
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(28) Management of property confiscated.
(29) Possession of property
{Administrator 2(25) of ITAto take possession}
Chapter-V-Appellate Tribunal
{Sec. 30 to 45—Appeal within 45 days}
(49) Appeal to the High Court.
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(Chapter-VI-Special Courts)
(Chapter-VII-Penalty)
S.53. Penalty for benami transaction-rigorous jail of 1 to 7 years & fine up to 25% of FMV.
54. Penalty for false information.
54A. Penalty for non-compliance with notice/information.
54B.Proof of entries in records or documents.
55. Previous sanction.
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(Chapter-VIII Miscellaneous
{62…offences by companies
72. Repeals and savings}
The Prohibition of Benami Property Transaction Rules, 2016
������With tons of thanks�Team Insight�(in the service of Nation/Taxpayers)�Ramesh Chander 98183 88009�rchander_irs1990@yahoo.co.in
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