Question

Which of the following statements about Benami Transactions in India is/are correct?
1. It includes only immovable property.
2. Property which is subject matter of Benami transaction shall be confiscated by the Central Government.
3. Only the Beneficial Owner and not the Benamidar shall be punishable.
4. The fine for benami transactions may extend to twenty-five per cent of the fair market value of the property.
Select the correct answer using the code given below:

• A. 1, 2 and 3
• B. 2 and 3
• C. 2 and 4
• D. 1 and 4

Answer 1

The correct option is C 2 and 4

Benami transaction is a transaction in which the real beneficiary is not the one in whose name the property is purchased. Benami Property" can be assets of any kind, whether movable or immovable, tangible or intangible. Any property, which is subject matter of benami transaction, shall be liable to be confiscated by the Central Government.

Whoever is found guilty of the offence of benami transaction shall be punishable with rigorous imprisonment for a term which shall not be less than one year, but which may extend to seven years; and such person shall also be liable to fine which may extend to twenty-five per cent of the fair market value of the property.