AMENDMENTS TO THE TO THE PROHIBITION OF BENAMI PROPERTY TRANSACTIONS ACT, 1988 in Union Budget 2020

BENAMI PROPERTY

A Benami property is a property that whether, movable or immovable, tangible or intangible, the property is said to be the subject matter of the Benami transaction. A Benami property also includes any right or any such document which evidences a title or interest in such property. A Benami property may also include the consideration that was received from such property. 

BENAMI TRANSACTION

A Benami transaction is those transactions in which a property is transferred from one person to another or it also includes a transaction in which a property is held by one person (Benamidar) but the consideration for that property is paid by another person (beneficial owner).

AMENDMENT

The amendment to the prohibition of the Benami Property Transactions Act, 1988 was made through the Finance Bill, 2020.

The amendment of the act will come into force from 1st April 2020.

The amendment is made in the Prohibition of Benami Property Transactions Act, 1988, in section 9, in sub-section (1), for clause (b), the following clause shall be substituted with effect from the 1st day of April 2020, namely:–– 

“(b)(i) has been a member of the Indian Legal Service and has held the post of Joint Secretary or equivalent post in that Service; or 

(ii) is qualified for appointment as District Judge.”

Section 9 of the act states the ‘Qualifications for appointment of Chairperson and Members. The current amendment replaces the previous one which states that ‘has been a member of the Indian Legal Service and has held the post of Joint Secretary or equivalent post in that service.’ To ‘(b)(i) has been a member of the Indian Legal Service and has held the post of Joint Secretary or equivalent post in that Service, or (ii) is qualified for appointment as District Judge.’ The clause has been added that through which it clears up that any person who is qualified for the appointment of the District Judge also comes under the purview of section 9 of the act.

CONCLUSION

The amendment made through the finance bill, 2020 to the Prohibition of Benami Property Transactions Act, 1988 was deemed to be necessary by the government and was done for the betterment of the act.

Author:

eStartIndia Team