10 Points to Know about Benami Transaction Bill 2015

In order to have a control on generation of Black money in India.PM Modi Govt has introduced Benami Transaction Bill 2015, which got cleared from Lok Sabha and now it is moving toward Rajyasabha for the approval. Real Estate is the main source of black money generator in Indian Domestic Market. The main reason to launch Benami Transaction Bill 2015 is to put control over Benami Transitions in order to avoid taxes or avoid payment to their creditors in Indian market.

10 Points about Bill

1. Benami- Benami stands for “No Name”. In this bill the Benami is used to point out those property transitions in which the owner of the property is not the actual owner of the property.

2. Benami Transition-Lets understand what is Benami Transitioning Benami Transition the person who pay for the property is the not the owner of the property on paper. And the person whose name is on the paper for the owner of the property is the actual payer for the property.

3. List of not considered Benami Transition

(i) The property which is purchased through known income source in the name of Children, Spouse.

(ii) The property which is jointly purchased through known income source in the name of sister, brother.

(iii) The property which is purchased through known income source in the name of Hindu Undivided family (HUF).

(iv) The property which is purchased through known income source in the name of Trustee, Executor, Director , partner of company.

4. List of Benami Transitions

(i) Those property transitions which are carried out with bogus name come under Benami Transition.

(ii) Those transitions are considered to Benami Transitions where the property owner denies the ownership of property.

(iii) Those transitions are considered to Benami Transitions where the payer of property is not Traceable or Imaginary.

5. What will happen with Benami Property?

Once the authority confirms that the property is through Benami Transition or comes under Benami Transition .That Benami property gets confiscated.

6. Punishment

(i) If a person is found guilty in Benami Transitions in that case he/she would be facing a rigorous imprisonment which starts from one year to Seven Years.

(ii) Apart from imprisonment he/she would be facing a penalty of 25 % of the market value of the property.

7. Market value calculation

The property which comes in Benami transition would face penalty. The market value of the property will be calculated or estimated by Registered Valuer.

More Info@ http://goo.gl/qAU63k