Benami transaction
Also called: Benami property · Topic: Taxation: Direct and Indirect Taxes, GST and Global Tax Issues · NCERT: Beyond NCERT
Meaning
A benami transaction is one where property is held in one person's name but someone else paid for it. "Benami" means "without a name". The real owner stays hidden, often to conceal black money or escape tax. The Benami Transactions (Prohibition) Amendment Act 2016 gave the government stronger powers to seize such property and punish those involved.
Example
An official buys a flat with bribe money but registers it in the name of his driver. The flat is benami property and can be seized under the 2016 Act.
Don't confuse with
- Shell company: a company with no real business used to hide money. Benami is about a person fronting for the real owner of an asset.
Related concepts
- Tax avoidance and tax evasion
- General Anti-Avoidance Rule
- Tax compliance
- Black money
- Money laundering
- Hawala
- Shell company