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What is a Benami Property?

Abhishek Singh, Ranchi
Benami is a Hindi word that means without the name. A Benami property, therefore, is a property that is bought by a person but which is not under their name. So it could be the following: 
  • Property held in the name of your spouse or children for which the amount is paid through known sources of income. 
  • Joint property with brother, sister or relatives paid through known sources of income 
The transaction involved in the process is referred to as a Benami transaction. In general, in order to evade taxes, people use their money to purchase benami property. They use fake name or addresses making the real owner harder to trace. The person in whose name the property is bought is called a benamdar.
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