Purchase of property names for family members

If an assessor purchases a property for a value of Rs. 50 lacs and makes the payment through an online bank mode, and the property is registered in the names of family members, it may be considered as a benami transaction as per the Benami Transactions (Prohibition) Act, 1988. The act prohibits any person from entering into any benami transaction, and also prohibits any benami transaction from being entered into.

A benami transaction is defined as a transaction in which property is held by or transferred to a person, but the consideration for such property has been provided or paid by another person. In this case, if the assessor is paying for the property but it is registered in the names of family members, it may be considered as a benami transaction.