What Do You Mean By Benami Transaction
Hello everyone, got confused in Benami transaction, don’t worry here is the full definition. Just go through it ,
A Benami transaction is a transaction where the legal owner and payer of a property transaction are two different persons. As per the revised provisions, a Benami transaction is:
1. A transaction where property is transferred to or held by one person for direct or indirect, immediate or future benefits of another person, who has provided or paid the consideration, except when: –
a) An HUF is purchasing a property in the name of a karta, or any other member from known sources;
b) A Person is holding the property in a fiduciary capacity (e.g. trustee, executor, partner of a partnership firm, director of a company, a depository participant, etc)
c) An individual is purchasing a property in the name of his spouse or any child, provided the consideration is paid out of the known sources;
d) Any person purchasing the property in the name of his brother or sister or lineal ascendant or descendent, where he is one of the joint owners, provided the consideration is paid out of the known sources;
2. A transaction carried out in a fictitious name; or
3. A transaction where the owner of the property is not aware of, or, denies knowledge of such ownership;
4.A transaction where the person providing the consideration is not traceable or is fictitious.
Thus, any transaction where possession of any immovable property of any immovable property is taken as a part performance of a contract is not as a Benami transaction if the contract is registered and consideration as well as stamp duty have been paid. It should also be noted that property would include asset of any kind, whether movable or immovable, tangible or intangible, and includes rights or interest as well as proceeds from the property .
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Prakrati Jindal (Team Itslyf )