BENAMI TRANSACTIONS (PROHIBITION) Amendment Act, 2016
•In its efforts to trace the black money in India government has introduced the Benami Transactions (Prohibition) Amendment Act, 2016. It will help to catch the benami transactions in properties which are mostly used to hide the black money.
- The Benami Transactions (Prohibition) Amendment Act, 2016 has come into force with effect from November 1, 2016.
• It covers a transaction or an arrangement in respect of a property where the owner of the property is not aware of, or, denies knowledge of such ownership.
• It also covers a transaction or an arrangement in respect of a property where the person providing the consideration is not traceable or is fictitious.
• “Property” means assets of any kind — movable, immovable, tangible, intangible, any right or interest, or legal documents. Therefore assets like shares, loans, debtors etc. are also covered.
• Any property, which is subject matter of benami transaction, shall be liable to be confiscated by the Central Government.
• *PENALTY FOR BENAMI TRANSACTION* : Whoever is found guilty of the offence of benami transaction shall be punishable with rigorous imprisonment for a term which shall not be less than one year, but which may extend to seven years and shall also be liable to fine which may extend to twenty-five per cent of the fair market value of the property.
• *PENALTY FOR FALSE INFORMATION*: Any person who is required to furnish information under this Act knowingly gives false information to any authority or furnishes any false document in any proceeding under this Act, shall be punishable with rigorous imprisonment for a term which shall not be less than six months but which may extend to five years and shall also be liable to fine which may extend to ten per cent. of the fair market value of the property.
• *PROCEEDINGS AGAINST LEGAL REPRESENTATIVE*: Where a person dies during the course of any proceeding under this Act, any proceeding taken against the deceased before his death shall be deemed to have been taken against the legal representative and may be continued against the legal representative from the stage at which it stood on the date of the death of the deceased.
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