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      Question

      Which of the following statements about benami

      transactions is correct under the amended Benami Transactions (Prohibition) Act, 1988?
      A Benami property can be inherited by legal heirs Correct Answer Incorrect Answer
      B Benami transactions are allowed for family trusts Correct Answer Incorrect Answer
      C Benami property can be confiscated by the government Correct Answer Incorrect Answer
      D There is no punishment prescribed for benami transactions Correct Answer Incorrect Answer

      Solution

      Under the Benami Transactions (Prohibition) Amendment Act, 2016, benami properties can be: β€’ Confiscated by the central government without payment of compensation, β€’ The Initiating Officer can provisionally attach the property, followed by confirmation from the Adjudicating Authority. Punishment includes imprisonment and fine for those involved in benami transactions.

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