Benami Transaction Rules was given in 2019 by the Pakistan Tehrik-e- Insaf (PTI) government. The Benami Transactions (Prohibition) Act was promulgated in 2016 but there were no such rules were framed. Now in 2019, the government has framed the Benami Transaction Rules.
This is a remarkable step of PTI government by which holding the black money or bank balance in Pakistan is now becomes difficult.
In this tutorial we will discuss:
- What is Called Benami Transaction?
- The Procedure is Adopt for Stopping the Benami Transaction?
- What effects it has on common people?
What is the Benami Transaction?
When a person holds the money, bank balance, and property on the name of other people to save himself from tax or to deviate from the eye of law it is called Benami Transaction.
More often the property gain through illegal and fraudulent way comes under the shade of Benami Transaction.
The purpose of this act to be imposed is to clean Pakistan from the illegal property and black money. And to stop this illegal activity as soon as possible.
What is the procedure?
To make this act work better the government has established three main authority offices in Lahore, Islamabad, and Karachi. The presiding officer of these offices will be commissioner income tax.
After that, these commissioner income tax can appoint any of his subordinate officers to inquire about the Benami transaction. This officer will inquire about the particular Benami transaction or benami bank accounts and present his report in not more than 90 days.
Then the authority will register an FIR against the person who has been named in this inquiry. Now after that, the court will do the complete trial against this person. One thing is to remember that if there a Benami property against any person then he denies that he doesn’t have such capability to obtain such a large property as he is so poor.
Now the same inquiry officer that was appointed by the commissioner income tax, will do the inquiry again and find out the real culprit and then the legal procedure will be followed as usual.
If no owner of that property has been found then this property will be seized in favor of the State.
For complete brief information, you can watch the following video.
What effect it has on Common People?
According to Benami Transaction Rules 2019, there is a rule for all the people who inform the government about the illegal or Benami Transaction or bank accounts then he will get the 5% of the total amount of that property as Reward. This action is called “Whistle Blower”.
Now if the property amount is more than 2 million and less than 5 million then the informer will get 5% of that property and 1 lac Rupee in addition to that.
And then the informed property is more than 5 million then he will get the 5% of that property and Rs.220, 000 /- in addition to that.
This act has many benefits for the common people as you have seen in the above lines. Now no one can make big properties from the money of poor people and if he has done so then the people can use this “Whistle Blower” system to catch him.
To conclude this article I can say that Benami Transaction Rules 2019 is a good step of this government and it must be appreciated by and large. For common people like us, we must report such illegal transaction or bank accounts to the government so that the real culprit should be punished. According to the government the name of the informer should be kept hidden. Now if you have any question query about the Benami Transaction Act then use the comment section for all these things.