Sample Read
© Taxmann Price : ` 115 Law stated in this book is as updated till 1st December, 2025 Published by : Taxmann Publications (P.) Ltd. Sales & Marketing : 59/32, New Rohtak Road, New Delhi-110 005 India Phone : +91-11-45562222 Website : www.taxmann.com E-mail : sales@taxmann.com Regd. Office : 21/35, West Punjabi Bagh, New Delhi-110 026 India Printed at : Tan Prints (India) Pvt. Ltd. 44 Km. Mile Stone, National Highway, Rohtak Road Village Rohad, Distt. Jhajjar (Haryana) India E-mail : sales@tanprints.com Disclaimer Every effort has been made to avoid errors or omissions in this publication. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. It is notified that neither the publisher nor the author or seller will be responsible for any damage or loss of action to any one, of any kind, in any manner, therefrom. It is suggested that to avoid any doubt the reader should cross-check all the facts, law and contents of the publication with original Government publication or notifications. No part of this book may be reproduced or copied in any form or by any means [graphic, electronic or mechanical, including photocopying, recording, taping, or information retrieval systems] or reproduced on any disc, tape, perforated media or other information storage device, etc., without the written permission of the publishers. Breach of this condition is liable for legal action. For binding mistake, misprints or for missing pages, etc., the publisher’s liability is limited to replacement within seven days of purchase by similar edition. All expenses in this connection are to be borne by the purchaser. All disputes are subject to Delhi jurisdiction only.
Contents PROHIBITION OF BENAMI PROPERTY TRANSACTIONS ACT, 1988 PAGE
CHAPTER I PRELIMINARY 1. Short title, extent and commencement
1
2. Definitions
1 CHAPTER II
PROHIBITION OF BENAMI TRANSACTIONS 3. Prohibition of benami transactions
6
4. Prohibition of the right to recover property held benami
7
5. Property held benami liable to confiscation
7
6. Prohibition on re-transfer of property by benamidar
7
CHAPTER III AUTHORITIES 7. Adjudicating Authority
8
8. [Omitted by the Finance Act, 2021, w.e.f. 1-7-2021]
8
9. [Omitted by the Finance Act, 2021, w.e.f. 1-7-2021]
8
10. [Omitted by the Finance Act, 2021, w.e.f. 1-7-2021]
8
11. [Omitted by the Finance Act, 2021, w.e.f. 1-7-2021]
9
12. [Omitted by the Finance Act, 2021, w.e.f. 1-7-2021]
9
I-5
CONTENTS
I-6 PAGE
13. [Omitted by the Finance Act, 2021, w.e.f. 1-7-2021]
9
14. [Omitted by the Finance Act, 2021, w.e.f. 1-7-2021]
9
15. [Omitted by the Finance Act, 2021, w.e.f. 1-7-2021]
10
16. [Omitted by the Finance Act, 2021, w.e.f. 1-7-2021]
10
17. [Omitted by the Finance Act, 2021, w.e.f. 1-7-2021]
10
18. Authorities and jurisdiction
10
19. Powers of authorities
10
20. Certain officers to assist in inquiry, etc.
11
21. Power to call for information
12
22. Power of authority to impound documents
12
23. Power of authority to conduct inquiry, etc.
12
CHAPTER IV ATTACHMENT, ADJUDICATION AND CONFISCATION 24. Notice and attachment of property involved in benami transaction
13
25. Manner of service of notice
15
26. Adjudication of benami property
15
27. Confiscation and vesting of benami property
17
28. Management of properties confiscated
18
29. Possession of the property
18
CHAPTER V APPELLATE TRIBUNAL 30. Establishment of Appellate Tribunal
18
31. Composition, etc., of Appellate Tribunal
19
32. Qualifications for appointment of Chairperson and Members of Appellate Tribunal
19
33. Terms and conditions of services of Chairperson and Members of Appellate Tribunal
19
34. Term of office of Chairperson and Members
20
35. Removal of Chairperson and Member from office in certain circumstances
20
36. Vacancies, etc., not to invalidate proceedings of Appellate Tribunal
20
37. Resignation and removal
21
38. Member to act as Chairperson in certain circumstances
21
39. Staff of Appellate Tribunal
21
I-7
CONTENTS PAGE
40. Procedure and powers of Appellate Tribunal
21
41. Distribution of business amongst Benches of Appellate Tribunal
22
42. Power of Chairperson of Appellate Tribunal to transfer cases
22
43. Decision to be by majority
22
44. Members, etc., to be public servants
22
45. Bar of jurisdiction of civil courts
23
46. Appeals to Appellate Tribunal
23
47. Rectification of mistakes
24
48. Right to representation
24
49. Appeal to High Court
25 CHAPTER VI SPECIAL COURTS
50. Special Courts
25
51. Application of Code of Criminal Procedure, 1973 to proceedings before Special Court
26
52. Appeal and revision
26 CHAPTER VII
OFFENCES AND PROSECUTION 53. Penalty for benami transaction
26
54. Penalty for false information
27
54A. Penalty for failure to comply with notices or furnish information
27
54B. Proof of entries in records or documents
27
55. Previous sanction
27
55A. Power to tender Immunity from prosecution
28
CHAPTER VIII MISCELLANEOUS 56. Repeal of provisions of certain Acts
28
57. Certain transfers to be null and void
29
58. Exemption
29
59. Power of Central Government to issue directions, etc.
29
60. Application of other laws not barred
30
61. Offences to be non-cognizable
30
CONTENTS
I-8 PAGE
62. Offences by companies
30
63. Notice, etc., not to be invalid on certain grounds
31
64. Protection of action taken in good faith
31
65. Transfer of pending cases
31
66. Proceedings, etc., against legal representative
31
67. Act to have overriding effect
32
68. Power to make rules
32
69. Laying of rules and notifications before Parliament
33
70. Power to remove difficulties
33
71. Transitional provision
33
72. Repeal and saving
34
SUBJECT INDEX
35
PROHIBITION OF BENAMI PROPERTY TRANSACTIONS RULES, 2016 1. Short title and commencement
39
2. Definitions
39
3. Determination of price in certain cases
39
4. Furnishing of Information
40
5. Provisional attachment
41
6. Confiscation of property under second proviso to sub-section (1) of section 27
41
7. Receipt of confiscated property under sub-section (1) of section 28
42
8. Management of confiscated property under sub-section (1) of section 28
42
9. Disposal of confiscated property under sub-section (3) of section 28
42
10. Appeals to the Appellate Tribunal
43
FORM 1 : Management of Confiscated Property Register (Movable)
43
FORM 2 : Management of Confiscated Property Register (Immovable)
44
FORM 3
44
I-9
CONTENTS PAGE
PROHIBITION OF BENAMI PROPERTY TRANSACTIONS (CONDITIONS OF SERVICES OF MEMBERS OF ADJUDICATING AUTHORITY) RULES, 2019 1. Short title and commencement
46
2. Definition
46
3. Method of recruitment
46
4. Medical fitness
47
5. Resignation
47
6. Procedure for inquiry for removal of Member of Adjudicating Authority
47
7. Salary and allowances
48
8. Pension, Gratuity and Provident Fund
48
9. Leave
48
10. Leave sanctioning authority
48
11. Accommodation
49
12. Declaration of Financial and other Interests
49
13. Other conditions of service
49
14. Oaths of office and secrecy
49
15. Power to relax
49
16. Interpretation
49
17. Saving
50
FORM I: Form of Oath of Office for the Chairperson/Member of the Adjudicating Authority
50
FORM II: Form of Oath of Secrecy for the Chairperson/Member of the Adjudicating Authority
50
PROHIBITION OF BENAMI PROPERTY TRANSACTIONS (REMOVAL OF DIFFICULTIES) ORDER, 2018 1. Short title and commencement
51
2.
52
CONTENTS
I-10 PAGE
PROHIBITION OF BENAMI PROPERTY TRANSACTIONS (REMOVAL OF DIFFICULTIES) SECOND ORDER, 2018 1. Short title and commencement
54
2.
54
Prohibition of Benami Property Transactions Act, 1988 [45 OF 1988]* An Act to prohibit benami transactions and the right to recover property held benami and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Thirty-ninth Year of the Republic of India as follows :— [CHAPTER I
1
PRELIMINARY] Short title, extent and commencement. 1. (1) This Act may be called the 2[Prohibition of Benami Property Transactions Act, 1988] (45 of 1988). (2) It extends to the whole of India 2a[***]. (3) The provisions of sections 3, 5 and 8 shall come into force at once, and the remaining provisions of this Act shall be deemed to have come into force on the 19th day of May, 1988. [Definitions.
3
2. In this Act, unless the context otherwise requires,—
*Dated 5-9-1988. 1. Inserted by the Benami Transactions (Prohibition) Amendment Act, 2016, w.e.f. 1-11-2016. 2. Substituted for “Benami Transactions (Prohibition) Act, 1988”, ibid. 2a. Words “except the State of Jammu and Kashmir” omitted by the Jammu and Kashmir Reorganisation Act, 2019, w.e.f. 9-8-2019. 3. Substituted by the Benami Transactions (Prohibition) Amendment Act, 2016, w.e.f. 1-11-2016. Prior to its substitution, section 2 read as under : ‘2. Definitions.—In this Act, unless the context otherwise, requires,— (a) “benami transaction” means any transaction in which property is transferred to one person for a consideration paid or provided by another person; (b) “prescribed” means prescribed by rules made under this Act; (c) “property” means property of any kind, whether movable or immovable, tangible or intangible, and includes any right or interest in such property.’
1
S. 2
PROHIBITION OF BENAMI PROPERTY TRANSACTIONS ACT, 1988
2
(1) “Adjudicating Authority” means the Adjudicating Authority 3a[referred to in] section 7; (2) “Administrator” means an Income-tax Officer as defined in clause (25) of section 2 of the Income-tax Act, 1961 (43 of 1961); (3) “Appellate Tribunal" means the Appellate Tribunal established under section 30; (4) “Approving Authority” means an Additional Commissioner or a Joint Commissioner as defined in clauses (1C) and (28C) respectively of section 2 of the Income-tax Act, 1961 (43 of 1961); (5) “attachment” means the prohibition of transfer, conversion, disposition or movement of property, by an order issued under this Act; (6) “authority” means an authority referred to in sub-section (1) of section 18; (7) “banking company” means a company to which the provisions of the Banking Regulation Act, 1949 (10 of 1949), applies and includes any bank or banking institution referred to in section 51 of that Act; (8) “benami property” means any property which is the subject matter of a benami transaction and also includes the proceeds from such property; (9) “benami transaction” means,— (A) a transaction or an arrangement— (a) where a property is transferred to, or is held by, a person, and the consideration for such property has been provided, or paid by, another person; and (b) the property is held for the immediate or future benefit, direct or indirect, of the person who has provided the consideration, except when the property is held by— (i) a Karta, or a member of a Hindu undivided family, as the case may be, and the property is held for his benefit or benefit of other members in the family and the consideration for such property has been provided or paid out of the known sources of the Hindu undivided family; (ii) a person standing in a fiduciary capacity for the benefit of another person towards whom he stands in such capacity and includes a trustee, executor, partner, director of a company, a depository or a participant as an agent of a depository under the Depositories Act, 1996 (22 of 1996) and any other person as may be notified by the Central Government for this purpose; (iii) any person being an individual in the name of his spouse or in the name of any child of such individual and the consideration for such property has been provided or paid out of the known sources of the individual; 3a. Substituted for “appointed under” by the Finance Act, 2021, w.e.f. 1-7-2021.
3
PROHIBITION OF BENAMI PROPERTY TRANSACTIONS ACT, 1988
S. 2
(iv) any person in the name of his brother or sister or lineal ascendant or descendant, where the names of brother or sister or lineal ascendant or descendent and the individual appear as joint-owners in any document, and the consideration for such property has been provided or paid out of the known sources of the individual; or (B) a transaction or an arrangement in respect of a property carried out or made in a fictitious name; or (C) a transaction or an arrangement in respect of a property where the owner of the property is not aware of, or, denies knowledge of, such ownership; (D) a transaction or an arrangement in respect of a property where the person providing the consideration is not traceable or is fictitious. Explanation.—For the removal of doubts, it is hereby declared that benami transaction shall not include any transaction involving the allowing of possession of any property to be taken or retained in part performance of a contract referred to in section 53A of the Transfer of Property Act, 1882 (4 of 1882), if, under any law for the time being in force,— (i) consideration for such property has been provided by the person to whom possession of property has been allowed but the person who has granted possession thereof continues to hold ownership of such property; (ii) stamp duty on such transaction or arrangement has been paid; and (iii) the contract has been registered; (10) “benamidar” means a person or a fictitious person, as the case may be, in whose name the benami property is transferred or held and includes a person who lends his name; (11) “Bench” means a Bench of the Adjudicating Authority or the Appellate Tribunal, as the case may be; (12) “beneficial owner” means a person, whether his identity is known or not, for whose benefit the benami property is held by a benamidar; (13) “Board” means the Central Board of Direct Taxes constituted under the Central Boards of Revenue Act, 1963 (54 of 1963); (14) “director” shall have the same meaning as assigned to it in clause (34) of section 2 of the Companies Act, 2013 (18 of 2013); (15) “executor” shall have the same meaning as assigned to it in clause (c) of section 2 of the Indian Succession Act, 1925 (39 of 1925); (16) “fair market value”, in relation to a property, means— (i) the price that the property would ordinarily fetch on sale in the open market on the date of the transaction; and (ii) where the price referred to in sub-clause (i) is not ascertainable, such price as may be determined in accordance with such manner as may be prescribed;
PROHIBITION OF BENAMI PROPERTY TRANSACTIONS ACT 1988 WITH RULES – BARE ACT WITH SECTION NOTES AUTHOR : PUBLISHER : DATE OF PUBLICATION : EDITION : ISBN NO : NO. OF PAGES : BINDING TYPE :
Taxmann's Editorial Board Taxmann December 2025 2026 Edition 9789371268691 68 Paperback
Rs. 115 DESCRIPTION Prohibition of Benami Property Transactions Act 1988 with Rules [Bare Act with Section Notes] by Taxmann presents a clear, concise, and authoritative reproduction of India's core legislation governing benami property transactions. The publication contains the complete text of the Act along with allied Rules and Orders, supported by succinct section-wise editorial notes and select judicial references. It enables readers to understand the statutory framework governing benami transactions, including the identification of benami property, the powers of authorities, attachment, adjudication, confiscation, prosecution, and appellate mechanisms. This book is intended for the following audience: • Legal Professionals & Litigators • Chartered Accountants, Tax Consultants & Financial Advisors • Judges & Judicial Officers • Law Students & Academics • Regulatory, Revenue & Enforcement Agencies The Present Publication is the 2026 Edition, covering the amended and updated text of the Prohibition of Benami Property Transactions Act [Act No. 45 of 1988] and Rules, with the following noteworthy features: • [Authentic Statutory Text] Complete and unabridged text of the Act • [Allied Rules & Orders] Includes the Prohibition of Benami Property Transactions Rules 2016, Conditions of Service Rules 2019, and Removal of Difficulties Orders 2018 • [Section Notes] Concise explanatory notes clarifying key definitions, procedures, and statutory consequences • [Pre-amendment Footnotes] Earlier versions of provisions were included to explain the pre-amendment legal position • [Latest Updates] Reflects amendments and clarifications up to the latest applicable date • [Reader-friendly Layout] Clear sectioning, headings, footnotes, and cross-references for quick navigation • [Case Law] Select judicial references on jurisdiction, attachment, and confiscation • [Complete Statutory Coverage] Coverage of rules, prescribed forms, and procedural formats
Buy Now