Property buyers and those who are planning to gift the property to relatives need to be aware of the Benami Law which has been amended in 2016.
There are few cautions that need to be taken care. Advocate Manish Jain, whose specialize in White Collar and Economic Crimes suggests precautions to save from legal and tax issues under Benami Law.
#ManishJain #BenamiLaw #Property #Money #OutlookMoney #OutlookMagazine #OutlookGroup
There are few cautions that need to be taken care. Advocate Manish Jain, whose specialize in White Collar and Economic Crimes suggests precautions to save from legal and tax issues under Benami Law.
#ManishJain #BenamiLaw #Property #Money #OutlookMoney #OutlookMagazine #OutlookGroup
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NewsTranscript
00:00 So the Benami law in India has been redefined by virtue of the latest amendment which came
00:16 in force on 10th of August 2016.
00:21 The reason of the amendment is quite clear that the government want to put a restrain
00:26 and check on the black money.
00:31 So I would like to inform you about the four basics test so as to see whether the transaction
00:39 is a Benami transaction or is not a Benami transaction.
00:43 The first test will be explained by virtue of an example.
00:47 Number one, where the Amit purchased the property in his own name for the benefit of his friend
00:55 Ra and the funds which has been used for the purchase of the said property are the funds
01:00 of Ra.
01:01 The said property will be regarded as the Benami property.
01:05 So the second situation of the Benami transaction is that where Ramesh purchased the property
01:13 in the name of Shah but the Shah doesn't exist.
01:18 So the said transaction will be a Benami transaction.
01:22 The third eventuality will be where the property is in the name of Ramesh but the Ramesh is
01:30 not aware that any such property exist in his name or he is not aware or he denies the
01:37 ownership of that property.
01:39 The said property will be a Benami property and the said transaction will be a Benami
01:45 transaction.
01:46 The fourth eventuality can be where the consideration paid by the person is not traceable or is
01:56 fictitious.
01:57 In that eventuality, said property transaction will be a Benami transaction.
02:07 If husband purchase a property in the name of his wife or children from his known sources
02:16 of income or from the known sources of his assets, in that eventuality, that said transaction
02:24 will not be a Benami transaction.
02:27 The second exception is where the grandfather purchases a property in the name of his grandson
02:37 for the benefit of grandson and he is the joint owner in that property and the funds
02:42 which has been utilized are the known sources of the funds of the grandfather.
02:49 That will fall in the exception and will be out of the Benami laws.
02:56 Any property, whether it's an immovable property or a cash, it should be from the known and
03:02 justifiable sources.
03:05 So one should be quite cautious while dealing and transacting into the property.
03:09 One should go for proper legal assistance and also the due diligence with respect to
03:14 the property before purchasing and transacting the same.
03:19 One should see and ensure that the property should pass the litmus test of Benami laws
03:26 as well as should ensure that the property should be purchased and transacted through
03:32 the known and justifiable source of income.
03:37 I think if the law enforcement agencies work well, definitely the black money will come
03:44 to an end.
03:45 [Music]