Benami Property Transaction Act 2016 is a further amendment of Benami Property Transaction Act 1988 which is again re entitled as Prohibition of Benami Property Transaction Act 1988 (PBPT). The amendment act came into force on 1st November 2016.
What is a Benami Act?
It is a provision passed by the Government of India that a person not buying a property in her/ her name, rather financing the property in some other’s name will be termed as “benamdar” and the possession of such property will be termed as “benami property”.
What are the charges imposed under the Act?
The real owners who were buying the property on a fake name or on somebody else’s name will have to face severe charges held under the Benami Act. Earlier, under PBPT Act, the charges imposed were up to 3 years of imprisonment while under the PBPT Act of 2016, this has been increased to imprisonment of five to seven years with the imposition of fine which can legitimate up to 25% on the current market value of the benami property.
Provision to recover the property under Benami Act?
There is no acceptance of claim under such kind of possession of property. However, an appellate mechanism has been formed under PBPT to hear the cases which are filed against benami property. Any property found under the Benami Act will be confiscated by the central government without paying any compensation to the real holder of the property.
Official responsible for taking necessary action
Under the ministry of finance, Joint /Additional Commissioner of Income-Tax, an Assistant / Deputy Commissioner of Income-tax and a Tax Recovery Officer in each region have been notified to perform the functions and exercise the powers of the Approving Authority, Initiating Officer and Administrator, respectively, under the PBPT Act.