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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: • Confiscated by the central government without payment of compensation, • 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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