BENAMI TRANSACTION: PROHIBITED FINANCIAL TRANSACTION

  • BENAMI TRANSACTION: PROHIBITED FINANCIAL TRANSACTION

    Date : 05-11-2018 12:12

    First of all, we need to know what Benami Transaction is, an act which is passed by the parliament of India that prohibits certain types of financial transaction. In Benami transaction when a land or any property is purchased, it is taken in someone else’s name other than the name of the person who is actually taking it. These illegal transactions had impacted the Indian economy as well. It not only affected the Indian economy but as well as the social growth of India. To solve these problems which became a big problem in India, Benami transaction act was passed.

    What do you mean by partly perspective and partly retrospective?

    A prospective law is the one that is to take effect in future and has nothing to do with the past, whereas retrospective means the one that is to take effect in point of time i.e. present. An offense under this act shall be non-cognizable and bailable. Any person who enters into Benami transaction shall be punishable with imprisonment for a term which may extend to 3 years or with fine or both. Properties which was held Benami were also liable for confiscation

    There are few factors which cause Benami transaction one is for fraud and the other most important factor that is tax evasion. The income tax department warned people to stay away from Benami transaction, as it can cause a violation of the law as well as criminal prosecution and rigorous punishment for up to 7 years. They also put an advertisement in a nationalized newspaper saying if any person causes Benami transaction, beneficiary as well as the person who abets and induce Benami transaction shall be criminally liable and also will be liable to pay fine up to 25% of the market value of Benami property.

    The practice of Benami transaction has been conducted from many years, earlier people used to take property in the name of other family members or other relatives to hide it from other family members and sometimes to avoid restriction which is imposed by the government while taking any property. Benami transaction is the root cause of black money and corruption in India. There are many commoners as well as upper-class people who do Benami transaction, to avoid tax-related issues, so that they don’t have to pay anything to the government.

    There are many properties in India which are not in the name of the real owner of the property and those properties are called Benami property. Not all property which is taken in someone else’s name is Benami properties; there are some properties which are taken in the name of some other person in a good intention.

    As there are many case laws which are pending in the Indian court related to Benami transaction. Some of the cases are not really illegal, but as there are so many cases so it is not possible to actually determine which one has causes Benami transaction and which has not. Lawtendo will help you resolve your dispute if your case is pending before any court, and if not pending before any court and you want to get legal assistance contact Lawtendo now for the best legal services and best assistance. We are here to help you in every manner possible. For more Information Call or Whatsapp +919671633666 or visit Our Website www.lawtendo.com

Get Free Response





LATEST POST