Property or home is one of the necessities of living for an individual. But these days it is matter of pride to have two or more homes as a purpose of investment of black money and corruption. Hoarders used to keep money and keep investing in one or more property projects in name of some other person which may be their friend, relative to have more profit for the sake of money making. It has now become a business, investing in big properties for investment avoid paying tax by not showing its details from being declared in income tax return Benami property is one such thing To curb this attitude of hoarder and to keep a check on unaccounted money sources. Govt has implemented benami property transaction prohibition act under which any property found to be benami is acquired by government. Following are the way by which a customer can save it from being acquired by government:
Meaning of Benami Property: Benami Property is a property purchased by a person in the name of some other person may be his friend, relative or using a fictitious name means the owner does not exist and on whose name the property has been transferred has not paid the money for the price of the property.
NEW BENAMI ACT: After demonetisation drive government is planning to take serious action against black money investment people. The new Benami Property Act has been implemented from 1st November, 2016 under which any property which is being taken in the name of some other person which may be children, parents, siblings, relatives can be considered as benami property.If any person is liable to have any such property and failed to declare it in income tax return will be punished with 7 years rigorous imprisonment.
File an income tax return together for two years in one go:- If any individual has taken property in the last 2 years but has not declared it then now the government is giving you an opportunity that you can declare it by filing the income tax return in the name of that relative in whose name you have taken a property by filing an income tax return together of last 2 years in one go.
Tax deduction up to 30% on Rental Income: If any individual is getting income from rent by buying property in the name of some relative then you can file income tax return in that relative name. Only that thing you have to declare, that you have bought property with that rental income. This will be helpful in getting you a benefit of 30% discount.
Hence, we can say that Govt is taking serious steps to curb the menace of Black money and benami property act is one such major strong step taken by the Government.