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New Benami Act to take effect from Nov 1

The new law to prohibit benami transactions, which also provides for up to 7 years imprisonment and penalty for those indulging in such activities, will come into effect from November 1. 
●    With a view to curb the menace of black money, Parliament in August had passed the Benami Transactions (Prohibition) Act after assurance from Finance Minister Arun Jaitley that genuine religious trusts will be kept out of the purview of the legislation. 
●    While the existing law provides for up to three years of imprisonment or fine or both for carrying out benami transactions, the amended legislation would provide for seven years imprisonment and fine. 
●    The Act defines benami transactions, prohibits them and further provides that any violation is punishable with imprisonment and fine. 
●    The PBPT Act prohibits recovery of the property held benami from benamidar by the real owner. 

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