Monday , 25 September 2017
Home » NRI » What is Benami Property – All you need to know

What is Benami Property – All you need to know

231 views

benami

You must be hearing this word a lot now a days – “Benami property”. Government is taking actions to remove corruption and black money. After demonetisation of Rs 500 / 1000 notes, government is now starting to take action against benami properties.

What is Benami property –
As the name suggest, it means property without a name. In such transaction, the person doesnot buy the property in his / her name but buys in some other name.

Exclusions for benami transactions:

If the property purchased in name of spouse or child
if the joint property with brother, sister etc for which amount is paid out on known source of income charitable or religious properties are excluded

Benami Transactions (Prohibition) Act – Aug 2016

In order to tackle this issue, parliament has passed the Benami Transactions (Prohibition) Act in Aug 2016. This is applicable from 1-Nov-2016 and has provision on 7 year jail and fine.

Benami properties are used by many individuals to park their black money and that’s the reason government is enforcing new provisions to handle this.

If you have any queries related to this article or any other personal finance query ( Investment, Taxation etc), please comment below

http://wealth18.com/

About wealth18

The author is a Chartered Accountant and loves to write about Personal Finance, Wealth Management, Taxation etc. Disclaimer - The articles on this website is for informational and knowledge purposes and should not be treated as financial advice, Please consult your financial advisor before taking any investment decision.

Leave a Reply

Your email address will not be published. Required fields are marked *

*

6000 + Subscribers – Subscribe to our New Posts

Copy Protected by Chetan's WP-Copyprotect.