Quick Summary
In a new twist, insurers and their agents are now grappling with notices under the Benami Transactions (Prohibition) Amendment Act, 2016, following last years run-ins with income and service tax authorities. Some marketing intermediaries and agents of insurance companies have reportedly received not
Daily Limit Reached
You have reached your daily limit of 2 Free News
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Community
- Daily E-Newsletter
- Unlimited News Access
- Profile Visitors
- Link Social Profiles
- Featured Job Posts
- Pro Badge
- Expert GST Guidance
- Unlimited Forum Replies
- Download Content in PDF
BEST VALUE
2 YEAR PLAN
3,499
(Excl. of GST ₹629)
1 YEAR PLAN
1,999
(Excl. of GST ₹359)
3 MONTHS PLAN
999
(Excl of GST ₹179)
View all CCI PRO benfits
Already a PRO member? Login here for an ad-free experience.
FAQ :
The Benami Transactions (Prohibition) Amendment Act, 2016, is a law that prohibits benami deals, where property or assets are transferred to a person who is not the true beneficial owner.
Intermediaries are receiving notices as the Income Tax department investigates potential benami transactions, suspecting they were used to channel inflated commissions from insurance companies to agents, bypassing regulatory caps.
The allegations suggest that intermediaries acted as go-betweens, facilitating additional, potentially inflated, payments to agents that circumvented the commission limits set by insurance regulations.
The disputed deals were executed before March 26, 2023, which was before the Insurance Regulatory and Development Authority of India (IRDAI) introduced its updated regulations on commission payments.
Previously, the industry faced scrutiny from the Income Tax department regarding the deduction of 'surplus or illegal' commissions, and the Goods and Services Tax (GST) office probed input credit claims, with an uncovered evasion of over Rs 15,000 crore.
CAclubindia
