The Benami Transactions (Prohibition) change Act can get force on All Saints’ Day, 2016, the Central Board of Direct Taxes aforementioned on weekday.
Following this, the present Benami Transactions (Prohibition) Act are going to be renamed because the Prohibition of Benami Property Transactions Act (PBPT Act).
“The PBPT Act defines benami transactions, prohibits them and additional provides that violation of the PBPT Act is punishable with imprisonment and fine,” the official notification aforementioned. “The PBPT Act prohibits recovery of the property command benami from benamidar by the important owner. Properties command benami area unit chargeable for arrogation by the govt while not payment of compensation.”
According to the new law, folks caught with ‘benami’ properties may dish up to seven years of rigorous imprisonment and got to pay a big fine. to boot, the properties are going to be taken over. underneath the Act, a dealing is called ‘benami’ if property is command by one person, however has been provided or purchased by another person.
A person may additionally face rigorous imprisonment for up to 5 years for wittingly giving false data and can got to pay a fine of up to ten per cent of the market price of the property.
Source : BusinessLine