Any deal in which property is transferred in the name of one person and payment is made by another person is called ............

Correct option is B

The correct answer is (b) Benami transaction (transaction in others' name) 
Explanation: 
· A "benami transaction" (from Urdu, meaning "without name") occurs when a property is transferred to or held by one person (the benamidar), but the consideration (payment) for the property is provided by another person (the beneficial owner).
· The property is held for the benefit of the person who actually paid for it, with the intent of concealing the real owner's identity, often for purposes like tax evasion or money laundering.
· The Benami Transactions (Prohibition) Act, 1988 (significantly amended in 2016) prohibits such transactions and provides for the confiscation of benami properties without compensation. 
Information Booster: 
· The Act covers both movable and immovable property, tangible or intangible.
· Offenders can face rigorous imprisonment of one to seven years and a fine of up to 25% of the property's fair market value.
· The law has specific exceptions, such as property held by a spouse or child using the individual's known income sources. 
Additional Knowledge: (a) Hawala (illegal money transfer) 
· Hawala is an informal, unregulated system for transferring money internationally without physical movement of cash through official banking channels. It is a method of money transfer, not a specific type of property transaction. 
(c) Money laundering 
· Money laundering is the broader process of making illegally gained "black money" appear legitimate or "white." A benami transaction is one specific method that can be used in the process of money laundering. 
(d) Black money 
· Black money refers to funds that are earned illegally or not declared for tax purposes. It is often the source of money used in benami transactions, not the transaction type itself.