Representatives of the Institute of Chartered Accountants of India (ICAI), who gave a presentation to the Finance Standing Committee of Parliament here on Thursday, have suggested important changes in the Benami Transactions (Prohibition) Amendment Bill, 2015.

The ICAI representatives told the panel that the definition of benami transactions is too wide and suggested that exceptions be made to genuine, open, disclosed and transparent business transactions. The chartered accountants also suggested that in Section 9 of the Bill, the provision of exception to the transactions in the name of spouse or child should be extended to “any relative of the individual”.

For this, the definition of ‘relative’ can be taken from the Companies Act, 2013, they said. The ICAI also suggested that similar exception be extended to property purchased in the joint name of spouse or any relative of an individual.

It also suggested that the concept of stamp valuation price as per income tax for immovable property should also be included in the definition of the fair market value of a property.

The representatives noted that the proposed Bill was silent on the extra territoriality where the transaction, person standing in fiduciary capacity, benamidar, beneficial owner or property is situated or located abroad.

They also wanted to define the role of whistleblowers, which is important for detecting benami holdings.

The panel, headed by Congress leader Veerappa Moily, is likely to complete the proceedings on the Bill ahead of the Winter Session of Parliament.

A source in the panel said the report will be submitted in the first week of Winter Session.

Key amendments have been brought into the Act to limit benami transactions. The Bill, among other things, also seeks to amend the definition of benami transactions, proposes the establishment of adjudicating authorities and an Appellate Tribunal to deal with such transactions. (The Hindu)