I-T Department Can Seize Benami Assets Even Without Tracing Actual Owner: Authorities
New Delhi: The Income Tax (I-T) Department has the authority to attach assets under the anti-benami law, even if the actual owner of the property has not been identified.
Benami TransactionsIncome Tax DepartmentAntibenami LawBlack MoneyProperty SeizureReal EstateJan 14, 2025
This move is expected to bolster the government's efforts to curb black money and illegal financial activities.
The Benami Transactions (Prohibition) Act, 1988, was amended in 2016 to make it more stringent and effective.
The Act defines 'benami' transactions as those where a property is held by one person, but the consideration for such property is provided by another person.
The primary aim of the Act is to prevent the misuse of properties and assets for illegitimate purposes and to ensure transparency in financial dealings.
According to the authorities, the I-T Department can now take action against properties that are suspected to be benami, regardless of whether the actual owner can be traced.
This step is aimed at ensuring that individuals cannot evade taxes or hide their wealth by using proxies or nominees.
Information on the Benami Transactions (Prohibition) Act
The Benami Transactions (Prohibition) Act was originally enacted in 1988 to prohibit benami transactions and to provide for the recovery of properties held benami.
The Act was later amended in 2016 to strengthen its provisions and make it more robust.
The key amendments include the establishment of an Integrated Authority to investigate and adjudicate benami transactions, and the provision for attaching and confiscating benami properties.
I-T Department's Role in Combating Benami Transactions
The I-T Department plays a crucial role in identifying and investigating benami transactions.
The department has been actively using data analytics and other tools to track suspicious financial activities and to trace assets that may be held benami.
The new powers granted to the I-T Department under the Act will enable it to take more aggressive and proactive measures to combat benami transactions.
Significance of the New Powers
The ability to seize assets without tracing the actual owner is a significant move that can have a deterrent effect on individuals and entities involved in benami transactions.
This step is expected to help in recovering a substantial amount of black money and in ensuring that the tax system is fair and transparent.
FAQs
1.
What is a benami transaction?
A benami transaction is a transaction where a property is held by one person, but the consideration for such property is provided by another person.
The person in whose name the property is held is called the benamidar, and the person who provides the consideration is the real owner.
2.
What are the key provisions of the Benami Transactions (Prohibition) Act, 1988?
The Act prohibits benami transactions and provides for the recovery of properties held benami.
It also establishes an Integrated Authority to investigate and adjudicate benami transactions and provides for the attachment and confiscation of benami properties.
3.
Can the I-T Department seize assets under the Act?
Yes, the I-T Department has the authority to seize assets under the Benami Transactions (Prohibition) Act, 1988, even if the actual owner of the property has not been identified.
4.
What is the role of the Integrated Authority in the Act?
The Integrated Authority is responsible for investigating and adjudicating benami transactions.
It includes the Initiating Officer, Approving Authority, Administrator, and Adjudicating Authority.
5.
How will these new powers help in combating black money?
The new powers granted to the I-T Department will help in more effectively identifying and seizing benami assets, thereby deterring individuals and entities from evading taxes and hiding their wealth.
This will contribute to a more transparent and fair tax system.
Frequently Asked Questions
What is a benami transaction?
A benami transaction is a transaction where a property is held by one person, but the consideration for such property is provided by another person. The person in whose name the property is held is called the benamidar, and the person who provides the consideration is the real owner.
What are the key provisions of the Benami Transactions (Prohibition) Act, 1988?
The Act prohibits benami transactions and provides for the recovery of properties held benami. It also establishes an Integrated Authority to investigate and adjudicate benami transactions and provides for the attachment and confiscation of benami properties.
Can the I-T Department seize assets under the Act?
Yes, the I-T Department has the authority to seize assets under the Benami Transactions (Prohibition) Act, 1988, even if the actual owner of the property has not been identified.
What is the role of the Integrated Authority in the Act?
The Integrated Authority is responsible for investigating and adjudicating benami transactions. It includes the Initiating Officer, Approving Authority, Administrator, and Adjudicating Authority.
How will these new powers help in combating black money?
The new powers granted to the I-T Department will help in more effectively identifying and seizing benami assets, thereby deterring individuals and entities from evading taxes and hiding their wealth. This will contribute to a more transparent and fair tax system.
Related News Articles
Strata Sets Sights on Rs 2
Strata aims to migrate eligible assets to SM REITs
Anna Nagar: A Tale of Flooding and Unchecked Concretisation
Anna Nagar, once a well-planned residential area known for its high real estate prices, is now grappling with severe flooding and the consequences of uncontrolled concretisation. This story delves into the challenges faced by this high-profile neighborhoo
GIC Housing Finance's Net Profit Increases by 20.97% in Q2 FY25
GIC Housing Finance's net consolidated total income for Q2 FY25 was Rs 265.70 crore, a slight decrease of 1.66% from Rs 270.19 crore in the previous quarter. However, the company reported a significant rise in net profit, marking a 20.97% increase.
BSNL to Sell 780-Cotah Property in Kolkata for Rs 1,900 Crore
BSNL is set to finalize a major real estate deal in Kolkata, selling a 780-cotah plot at a prime location for Rs 1,900 crore. The plot, situated at the intersection of AJC Bose Road and Alipore Road, includes a heritage building.
CREDAI Hyderabad Unveils Detailed Insight into the Real Estate Market
V. Rajashekar Reddy, President of CREDAI Hyderabad, sheds light on the latest trends and developments in the city's housing market during the release of a comprehensive report.
Panchshil Realty Affiliate Acquires Land Worth Rs 615 Crore in Navi Mumbai
Panchshil Realty, under the leadership of Atul Chordia, has made significant land acquisitions in Navi Mumbai, purchasing parcels worth Rs 615 crore. This strategic move underscores the rising property values and development potential in the region, where