Benami Act to come into effect from November 1; here’s what you need to know
The Benami Act that seeks to give the government powers to confiscate ‘benami’ properties will come into effect from November 1, the Income Tax department said on Friday.
The department said that the Act of 1988 has been amended by the Benami Transactions (Prohibition) Amendment Act, 2016 (BTP Amendment Act), and the rules and all the provisions of the Amendment Act will be operative from Tuesday.
“After coming into effect of the BTP Amendment Act, the existing Benami Transactions (Prohibition) Act, 1988 shall be renamed as Prohibition of Benami Property Transactions Act, 1988 (PBPT Act),” the department said.
Properties of the Prohibition of Benami Property Transactions Act:
1. The PBPT Act defines benami transactions and prohibits them, stating that the violation of the act will be punishable with imprisonment and fine.
2. It prohibits the recovery of the property held benami from the benamidar by the real owner.
3. Properties held benami are liable for confiscation by the government without payment of compensation.
4. An appellate mechanism has been provided under the PBPT Act in the form of Adjudicating Authority and Appellate Tribunal.
5. The Adjudicating Authority referred to in section 6(1) of the Prevention of Money Laundering Act, 2002 (PMLA) and the Appellate Tribunal referred to in section 25 of the PMLA have been notified as the Adjudicating Authority and Appellate Tribunal, respectively, for the purposes of the PBPT Act.
6. A Joint / Additional Commissioner of Income-tax, an Assistant / Deputy Commissioner of Income-tax and a Tax Recovery Officer in each Pr.
7. CCIT Region have been notified to perform the functions and exercise the powers of the Approving Authority, Initiating Officer and Administrator, respectively under the PBPT Act.
This move will help the government in the fight against black money; along with the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, that will penalize those with unaccounted wealth even abroad.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.