Union Cabinet approves amendment in Benami Transactions (Prohibition) amendment Bill, 2015
The Union Cabinet has given its approval for introducing amendments to the Benami Transactions (Prohibition) (Amendment) Bill, 2015.
These amendments seek to strengthen Benami Transaction (Prohibition) Act, 1988 in terms of legal and administrative procedure.
The Bill seeks to (i) Amend the definition of benami transactions to widen the scope for legal action (ii) Specify penalties for entering into benami transactions and (iii) establish adjudicating authorities and Appellate Tribunal to deal with benami transactions.
- The main purpose of these amendments is to overcome the practical difficulties that may arise in the implementation of the stringent provisions of the Bill after it becomes an Act.
- The Bill also intends to effectively prohibit benami transactions and consequently prevent circumvention of law through unfair practices.
- It empowers the Union Government to confiscate benami property by following due procedure. Therefore it promotes equity across all citizens.
- The Bill provides immunity under the Benami Act to those who declare their benami properties under income declaration scheme.
About Benami Transaction (Prohibition) Act, 1988
The Act prohibits benami transactions and provides legal provisions for confiscating benami properties. It defines a benami transaction as a transaction where a property is held by or transferred to a person, but has been provided for or paid by another person.
Month: Current Affairs - July, 2016