Legal Question in Real Estate Law in India

is the property benami
The new property is in the name of my mother & myself ( Joint). The 90% of the funding came from my father account (after selling his existing property),

My contribution is around 10% only ( includind the money i use to remit in to his account ...

My Query is ''will this property will be benami'' since it is not on the name of my father ( considering his 90% contribution from his account )

The property is duly registered in my & my mother's name ( joint),

kindly reply sir, thank you

Asked on 5/09/09, 3:04 pm

4 Answers from Attorneys

Sumit Mehta S 'n' S Law Offices

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Re: is the property benami

A residential property can be purchased in the name of wife or in the joint names of husband and wife . If the property is bought with the funds provided by the husband, but registered in the name of his wife for IT purposes, legally, the wife will not be treated as the owner of the property. Any income earned from the house will be clubbed with the husband�s income for the purpose of income tax to be paid by the husband. Transactions where property is purchased in the name of wife or unmarried daughter will not be considered as benami.

Benami transaction is one by which property is transferred or registered in the name of a person but the consideration is paid by another. It occurs when people want to park their unaccounted money or avoid payment of taxes. By Benami Transactions (prohibitions) Act, such transactions are punishable and all properties held by benami are subjected to Government acquisition without payment of any damage or compensation.

Answered on 5/11/09, 2:23 am

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