After the successful implementation of Currency ban, Prime minister Modi is preparing for a huge decision which will destroy black money forever! Prime Minister Modi has learned that people are using Benami contracts for huge transactions and buying properties. So the government has decided to crackdown any such attempt from criminals!
People keeping ‘benami’ properties to evade taxes will get up to seven years rigorous imprisonment and fine, as per a new law aimed at checking black money in real estate sector.
President Pranab Mukherjee has recently given assent to the Benami Transactions (Prohibition) Amendment Act, 2016 and it has been notified by the government, officials said on Tuesday.The law has strict provisions to confiscate benami properties and stiff penalty for entering into such transactions, they said. A transaction is considered as benami (meaning nameless) where a property is transferred to or is held by a person and the consideration for such property has been provided or paid by another person.
In these cases, the property is held for the immediate or future benefit, direct or indirect, of the person who has provided its payment. The Benami Transactions (Prohibition) Amendment Bill, 2015 was introduced in Lok Sabha on May 13, last year by Finance Minister Arun Jaitley. It was then referred to the Standing Committee on Finance which gave its report on April 28. Lok Sabha passed the bill on July 27 and Rajya Sabha gave its nod on August 2.