Consider the following statements about Benami transactions (Prohibition) Amendment Act 2016:

Properties held Benami are liable for confiscation by the Government without payment of compensation.

Property transactions among family members are not Benami transaction.

Which of the statements given above is/are correct?

Question

Benami Transactions (Prohibition) Amendment Act 2016 amends the existing Benami Transactions (Prohibition) Act, 1988.
Property transactions among family members are not Benami transaction. Benami property includes immovable assets such as land, flat or house, movable assets such as gold, stocks, mutual fund holdings, bank deposits etc. If the property is sold, then the proceeds from the sale are also included under Benami property.
Properties held Benami are liable for confiscation by the Government without payment of compensation.
The Act establishes an Appellate Tribunal to hear appeals against any orders passed by the Adjudicating Authority.
The Act gives the Initiating Officer the power to enquire into any person, place, documents or property in the course of investigation.

GKToday Admin · Accepted Answer

Both 1 & 2

Benami Transactions (Prohibition) Amendment Act 2016 amends the existing Benami Transactions (Prohibition) Act, 1988.
Property transactions among family members are not Benami transaction. Benami property includes immovable assets such as land, flat or house, movable assets such as gold, stocks, mutual fund holdings, bank deposits etc. If the property is sold, then the proceeds from the sale are also included under Benami property.
Properties held Benami are liable for confiscation by the Government without payment of compensation.
The Act establishes an Appellate Tribunal to hear appeals against any orders passed by the Adjudicating Authority.
The Act gives the Initiating Officer the power to enquire into any person, place, documents or property in the course of investigation.

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