Benami Property Law will soon come into existence against Benami Property Holders. So check all related terms and information about Benami Property Law in this post.
Benami Property Law : This year in last “Mann Ki Baat” by Prime Minister Shri Narendra Modi , says that government is soon going to operationalise a Strong law against Benami property Holders.
Name of Law Banami Property Law
Proposed By PM Narender Modi
Notified In Mann Ki Baat Programme
Under Benami Transactions Amendment Act 2016
Launch Date will update soon
After Notes Ban , PM Narendra Modi promises law against Benami Property. This law make provision of Seven year fine and imprisonment . Also, Benami Property Law replacing three year jail or fine or both .
In “Mann Ki Baat” PM Narendra Modi says that the government is making a strong law to effectively deal with ‘Benami Property’ . Benami Property Law is going to take a strict action against ‘benami’ property.
‘Benami Property’ the property which is purchase in the name of others. PM says this is the property of the country so it is important to bring that back from such people.
Therefore, Benami Property Law is major step to eradicate corruption and black money holders.
Benami Property Law Details & Information:
- In Benami Transactions Amendment Act 2016 there is imprisonment of Seven years . Also, fine which extend to 25 % of fair market value i.e. estimate market value of property.
- Benami Property Law empower the government to seize someone’s property with authority . Also, it helps in confiscating deposits of people who are depositing their money into other people account .
However it seems does not prevent the corrupt people from benami property. Hopefully, government is going to make further amendment in the Benami Property Law.
Why Government makes Benami Property Law : what is Benami property :-
So, what is benami ? Benami means without name . Benami property means a property which is buy by a person not under his name . However, it include property purchase in the name of child, spouse .
A joint property with sister, brother or any other relatives of a person for which the amount is pay out of known sources of income also falls under benami transaction.
The real owner of such properties are hard to trace out due to fake names of the people.
The person on whose name such properties are purchase by a person is called Benamdar.
Benami Transactions includes buying assets of any kind – tangible, intangible , movable, immovable ,or legal documents.
Also, why people buys such Benami properties ? Because in order to avoid paying taxes . So, they purchase property in the names of his family, friends and some people also in name of their staff.
How benami transaction will affect people & need for tough law : Benami Property Law
- This whole process affect the revenue system of the government and affecting growth and development of the country.
- Instead of having black money in cash , people in order to save themselves from paying taxes . People tends to buy benami properties to save their black money.
- Since, the percentage of tax payer in country is a low . As, people does not show how much money they are holding in their pockets. So, it is very important to make tough Benami Property Law .