FBR clarifies Benami property perimeters

News Image

By MG News | March 20, 2019 at 12:35 AM GMT+05:00

0:00

Islamabad, 19th, March, 2019: After Implementation of Benami Transactions (Prohibition) Rules, 2019.The Federal Board of Revenue (FBR) has clarified that a Benami property means any property which is subject matter of Benami transaction and also includes proceeds from such property.

Benami transaction encompasses where a property is transferred to, or is held by, a person and the consideration for such property has been provided, or paid by, another person ( the trustees and wife, children, brother or sister to whom property has been transferred from known resources will be excluded); A transaction or arrangement in respect of a property carried out or made in a fictitious name; or a transaction or arrangement in respect of a property where the owner of the property is not aware of, or denies knowledge of, such ownership; or a transaction or arrangement in respect of a property where the person providing the consideration is not traceable or is fictitious.

The potential types of Benami properties include plots, houses, shopping plazas, shops, housing schemes, bank accounts, vehicles, business shares, jewellery, foreign currency, legal documents and intangible properties having financial value.

Benami Transactions (Prohibition) Rules, 2019have been enforced with immediate effect and BTB zones of Inland Revenue Service have been assigned the duty to establish cases against Benami properties and submit challan to Adjudication Authority within 120 working days. During this period, sale, purchase and transfer of property will be banned till further orders. Appeal against the decision of Adjudication Authority can be lodged with the Federal Tribunal and after the decision of the Federal Tribunal such properties will be confiscated and sold out by the Federal Government. Furthermore, if the crime of Benami transactionis proved, criminalproceedings will be initiated against accused persons andwhere proven guilty,rigorous imprisonment of one year to seven years can be awarded to such persons. Similarly, persons providing false and baseless information can also be sentenced to rigorous imprisonmentof six months to five years.

In this regard, the whistleblowers will be entitled to a cash reward for providing credible information leading to detection of Benami property or transaction. If property isworth Rs.2,000,000 or less, five percent of price of Benami property will be given to informer. If property’s worth is more than Rs.2,000,000 or 5,000,000, four percent of Benami property will be given to informer and where the value of property will be more than Rs.5,000,000, three percent of Benami property will be given to informer.

It is clarified that this reward will be given only if the information provided is of value and FBR doesn’t already have it and the information was not available in public records and appeal against confiscation of property has attained finality.

Related News

Name Price/Vol %Chg/NChg
KSE100 132,936.48
109.61M
-0.33%
-433.66
ALLSHR 82,886.09
419.57M
-0.23%
-195.07
KSE30 40,512.67
36.45M
-0.47%
-192.63
KMI30 191,673.59
46.24M
-0.47%
-907.08
KMIALLSHR 55,728.44
237.03M
-0.19%
-107.27
BKTi 36,115.63
5.94M
-0.56%
-201.55
OGTi 28,381.36
3.44M
-0.57%
-161.60
Symbol Bid/Ask High/Low
Name Last High/Low Chg/%Chg
BITCOIN FUTURES 108,535.00 108,880.00
107,680.00
80.00
0.07%
BRENT CRUDE 69.34 69.50
69.03
-0.24
-0.34%
RICHARDS BAY COAL MONTHLY 97.50 0.00
0.00
2.90
3.07%
ROTTERDAM COAL MONTHLY 106.00 106.75
106.00
0.25
0.24%
USD RBD PALM OLEIN 998.50 998.50
998.50
0.00
0.00%
CRUDE OIL - WTI 67.64 67.97
67.40
-0.29
-0.43%
SUGAR #11 WORLD 16.25 16.46
16.07
-0.13
-0.79%

Chart of the Day


Latest News
July 08, 2025 at 11:39 AM GMT+05:00

Pakistan-Afghanistan railway talks progress


July 08, 2025 at 10:42 AM GMT+05:00

Pakistan moves to regulate crypto with PVARA approval


July 08, 2025 at 09:41 AM GMT+05:00

DFML assembles over 300 EVs for delivery



Top 5 things to watch in this week

Pakistan Stock Movers
Name Last Chg/%Chg
Name Last Chg/%Chg