Black Money Law and Benami Property Law
To combat the issue of black money, the Indian government has implemented the Benami Property Transactions Act, 1988. The act was amended in 2016 to make it more stringent and to provide for more effective enforcement. The law defines "benami property" as any property that is held by one person but is paid for by another person.
The law also provides for the confiscation of benami property and criminal penalties for those found guilty of holding or dealing in such property. The act also establish the Benami Prohibition Unit (BPU) to investigate and prosecute benami transactions and the Adjudicating Authority (AA) to decide the benami disputes.
The main objective of the Benami Property Law is to target the unaccounted money that is used to buy properties and to curb the parallel economy. The law is intended to deter people from using illegal means to acquire property and to bring such transactions into the formal economy.
In summary, the Benami Property Law in India is aimed at combating the problem of black money by targeting property transactions made with illegal funds and bringing them into the formal economy. The law provides for penalties and confiscation of benami property and helps to curb the parallel economy.
We provide the legal assistance in proceeding and necessary compliance under both the above laws. These proceedings are technically inter linked with Direct Tax Litigation and Income Tax Litigations. Therefore, we can provide you overall advisory for all the matters under these laws.