What is benami property
Benami property is a property in which a person purchases a property in the name of someone else instead of purchasing it in his own name and all the benefits of which go to the person who has purchased the property first.
Benami property is that property whose price is paid by some other person but that price is paid by some other person. This property is taken in the name of some relative, wife or children. This property is called benami property.
The Government of India amended the Benami Property Act 1988 and this law was implemented from 1 November 2016, the main objective of which was to stop the increasing black money and to stop the black money being invested in property.
The Parliament passed the Benami Transactions Prohibition Act in August 2016 which renamed the existing Benami Transactions Act 1988 as the Benami Property Transactions Prohibition Act 2016 and provides all the powers to seize and seal the benami property.
What can be included in benami property
It includes all types of transactions which are sold to another person, including purchase of any item, movable or immovable property or any rights or shares, all such transactions are also included in it.
If a person is buying property in the name of his child or wife or relative, then this property is called benami property, in which the main source of income of the person is not his declared income, but money earned from some other means is included, then this property is also called benami property, if he purchases property from his declared income, then this property is his property.
If a person buys a property in the name of any family member or relative, then the property is called benami property. In this, the person can use the property but he is not legally entitled to it.
The Benami Property Act 1988 has been amended and implemented from 1st November 2016. Under this, the Central Government has the right to seize and seal the benami property.
What is benami property
punishment and penalty
When a person buys a benami property and is investigated for buying that benami property, then that person can be punished with a sentence of up to seven years and a fine equal to 25% of the property’s market value can also be imposed.
giving wrong information
If a person’s property is investigated and wrong information is given to the investigating officer, then a fine of 10% of the market value can be imposed on the person and he can also be sentenced to up to 5 years of imprisonment for this.
legal property
- If a person buys property in the name of his wife, child or relative and gives all the information as per the information given in his sources of income, then that property is considered as a legal property.
- The property sold by a Hindu undivided family (HUF) which is shown through the income source is also considered as legal property.
- Property purchased by a partnership firm from its income sources is a legal property
actual property owner
In the new property law by the government, a person has to link his Aadhaar card and PAN card with all the properties sold by him so that whenever the government wants to get information about any property, a notice will be sent to that person so that it can be ascertained whether the owner of the property is the same person in whose name the property is registered or someone else.
In this way the owner of the benami property can be traced or the property can be confiscated or sealed.
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