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.