Benami essentially means
property without a name. In this
kind of transaction, the person
who pays for the property does
not buy it under his/her own
name. The person on whose
name the property has been
purchased is called the benamdar
and the property so purchased is
called the Benami property. The
person who finances the deal is
the real owner. '
The property is held for the
benefit - direct or indirect - of the
person paying the amount.
What isn’t a Benami transaction?
1. Property held under the name
of spouse or child, for which the
amount is being paid through a
known source of income.
2. A joint property with a brother,
sister, or other relatives for
which the amount is paid out of
known sources of income.
3. Property held by someone in a
fiduciary capacity; that is, a
transaction involving a trustee
and a beneficiary.
What falls under a Benami
Assets of any kind — movable,
immovable, tangible, intangible,
any right or interest, or legal
documents. As such, even gold or
financial securities could qualify
to be Benami.
How it affect the people?
It is being done to curb black
money. People booked under the
act may face loss of property,
penally, and up to 7 years in jail.
People with unaccounted income
will sure have a tough time
ahead. As for the general public,
it won’t be much of an issue if
their transactions are legal.
Advocate Rohit Nagpal explains
what properties may fall under
the Benami transaction and
associated penalties for people
involved in the Benami
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