Brief guidance note regarding the Prohibition of Benami Property Transactions Act, 1988, being implemented by the Income Tax Department

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Transaction Act, 1988 has been amended by the Benami Transactions (Prohibition) Amendment Act, 2016 (BTP Amendment Act). The rules and all the provisions of the BTP Amendment Act have come into force on 1st November, 2016. The existing Benami Transactions (Prohibition) Act, 1988 has been renamed as Prohibition of Benami Property Transactions Act, 1988. The Act is to be implemented by the Income-tax Department. 2. Major consequences under the Act include confiscation of any property which is subject matter of benami transaction and rigorous imprisonment up-to 7 years and fine up-to 25% of the fair market value of the property. It also seeks to prohibit the benamidar from re-transferring the benami property held by him to the beneficial o....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....orates and Directorate of I&CI while conducting investigations under the Income-tax Act, 1961 which include searches, surveys, summons, etc. may also collect evidence/ information relevant for the proceedings under the Act, inter alia keeping in view the following: (a) Identification and examination of legal/apparent owner(s) and beneficial/real owner(s) of the property, inter-alia w.r.t. holding/transferring of the property and payment of consideration for such property. (b) Whether the property is held/transferred for the immediate or future benefit, direct or indirect, of a person other than the person who has provided the consideration, (c) Examination of the source of fund through which the property was acqui....