Benami property by mistake
Vimpi
(Querist) 23 November 2016
This query is : Resolved
I am a salaried employee and married. I had paid for a fresh residential land propert to the builder through my salary account and using cheques (between year 2011-13). In the records of the builder I changed the name of owner to my mothers name alone by signing an indenmity bond, even though I paid for the property. The reason was at that time I am suppose to travel abroad after some months and I thought it would be convinient if my mother could deal with land transactions, registration etc.
As this is fresh land the first registration of property is done in my mothers name alone.
Now with the amendment of Benami Act, it seems the land will become a benami property as I paid for the land and registered in my mothers name. My mother is an income tax payee and already has one more house in her name. I do not jointly hold the land with my mother.
And because of ignorance I did not though of complications at time of transfer or registration. We did not do transfer using a transfer deed just with indenmity bond and sending the documentation to the builder company.
My mother and I are in total agreement to do any documentation and transaction to make the property a valid and not benami. Could you please suggest what could be done in this case. Thanks
Vimpi
(Querist) 24 November 2016
According to the new Benami Amendment Act any transfer or sale to person who paid will become null and void. The resale to any other person will be subject to recovery from the benamidar (mother in this case) by the central government.
Kumar Doab
(Expert) 24 November 2016
You have posted that:
"In the records of the builder I changed the name of owner to my mothers name alone by signing an indenmity bond, even though I paid for the property. The reason was at that time I am suppose to travel abroad after some months..................."
There might be some scope in the record that you have mentioned.
Although you may need to explain; since the property could still be registered in your name even if you were not present on the date of registration.
Your representative say: wife,mother could have appeared with their ID's and registered in your name.It is possible in some states.
Approach a very able counsel specializing in revenue/property/civil matters with all the records that you have mentioned and other, if any.
Kumar Doab
(Expert) 24 November 2016
Had you consulted before acting on your own , your counsel might have suggested proper and just way to you.
Vimpi
(Querist) 24 November 2016
Do you mean that I get release deed to show that I have given loan to my mother and she had paid to me and is clear now. Is their any way a loan option could be shown of past date from me as a son.
Also my mom has approx 2-3 lac income shown in her filing return as she got deposits and pension after my fathers death, it is actually me who paid and signed the cheques from my salary account.
Rajendra K Goyal
(Expert) 24 November 2016
You can show the payment as loan to her, can recover from her.
Discuss in detail with your lawyer.
Kumar Doab
(Expert) 24 November 2016
Your own counsel can examine all docs,facts.inputs and render considered opinion.
Hemant Agarwal
(Expert) 19 December 2016
1. From the given history, the Transaction CANNOT be classified as "Benami Transaction", subject to the following:
a) Property is under possession of Mother,
b) Property is declared in Mother's Income Tax Return,
c) Property Purchase amount is shown payable to the son, in Mother's Income Tax Return,
d) Property Purchase amount is shown Receivable from Mother, in Son's Income Tax Return,
Keep Smiling .... Hemant Agarwal
VISIT: http://www.maharashtra-society-help-forum.com
Kumar Doab
(Expert) 19 December 2016
Explore the options suggested by Mr. Hemant Agarwal.
Vimpi
(Querist) 19 December 2016
Thanks for you reply. Currently and Till now the property is not declare in my mothers income tax. Also no such loans has been shown until now.
Could a loan been shown while filing her tax returns. Also wondering how the property is shown in income tax returns, I do not see that as field in the form as only incomes are mentioned while filing online.
Could you please suggest good lawyer who could sort this out. My mother lives in Indore, Madhya Pradesh. Thanks
Rajendra K Goyal
(Expert) 19 December 2016
Assets and liability are not shown in ITR-1, ITR-2 till income increase by threshold limit..
Sudhir Kumar, Advocate
(Expert) 20 December 2016
Mr Aggarwal has elaborated that this is perhaps not Benami property.
Yet various expressions of the querist draw attention
“Till now the property is not declare in my mothers income tax. Also no such loans has been shown until now.”
“Is their any way a loan option could be shown of past date from me as a son.”
“Currently and Till now the property is not declare in my mothers income tax. Also no such loans has been shown until now.”
“Could a loan been shown while filing her tax returns.”
Does it not appear that this forum is approached to commit a fraud with law seeking help of leanerd experts here.
Apparently the querist has not come with entire facts which would reveal real cause of his anxiety.
Sudhir Kumar, Advocate
(Expert) 20 December 2016
Please be cler whether you are or are not Govt/PSU employee.
if not then what is your profession.
Kumar Doab
(Expert) 20 December 2016
Revert to the point raised by Mr. Sudhir Kumar......"whether you are or are not Govt/PSU employee."
We missed it.
