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NRI bought a property in the name of my wife is it benami

jatin (Nil) (31 Points)

12 October 2011

I bought a property in the name of my wife in the year 2009 and the payment is done through my NRI A/c. Is it a benami transaction n if yes then how can i rectify. Pls help.

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6 Replies

CA. Anuj Gupta (Practices in NRI Int.Tax FEMA TP FD) (7024 Points)
Replied 12 October 2011

Please confirm whether my understanding is correct or not:-

You are NRI who has purchased property in your wife's name from funds held in NRI A/c.

Technically speaking the case can fall as benami transaction, but since the purchaser is your wife you can show the amount as loan to her in your books of account.

Anuj

+91-9810106211

femaquery @ gmail.com

CA. Anuj Gupta (Practices in NRI Int.Tax FEMA TP FD) (7024 Points)
Replied 12 October 2011

I presume funds have been transferred from NRO or NRE account.

Anuj

+91-9810106211

femaquery @ gmail.com

jatin (Nil) (31 Points)
Replied 12 October 2011

Funds have been transferred from NRE A/c

jatin (Nil) (31 Points)
Replied 12 October 2011

Any solution pls..

CA. Anuj Gupta (Practices in NRI Int.Tax FEMA TP FD) (7024 Points)
Replied 12 October 2011

If such houses have been sold than there is trouble from RBI also.

Anuj

+91-9810106211

femaquery @ gmail.com

Aparna Raja K.C (Student) (520 Points)
Replied 13 October 2011

A benami transaction was one where property was purchased or transferred in the name of one person but another person paid the consideration for the transfer.