if you have given gift to your sister and she purchases property in her name it would not be benami transaction 

2) you are at liberty to gift money to your friend . 

3) he can use the money gifted to him to purchase any assets including property . it would not be benami property 

4) the act defines a benami transaction as a transaction where a property is held by or transferred to a person, but has been provided for or paid by another person.

5) property transactions where: (i) the transaction is made in a fictitious name, (ii) the owner is not aware of denies knowledge of the ownership of the property, or (iii) the person providing the consideration for the property is not traceable.would be benami 

NO,self acquired property of sister.  After gift, it`s her money and It`s not necessary to hold in joint ownership. It can be solely owned by another person.

After gift of money, it`s no more yours. Sister is absolute owner and she can deny you any interference in the property.

After death of owner mean your sister, it will become personal property of her legal heirs.

1. no law stops a brother from giving cash gift to his sister

2. and no law can stop the sister from purchasing a property using that cash gift

3. you are mixing the provisions of benami law and the cash gift

4. according to the act, if you are buying a property in joint names of yourself and your sister, and your sister has not contributed any money for the purchase, then that is not considered a benami transaction - that is what the provision says and not what you have interpreted

5. you have already gifted the cash to your sister. So it becomes her money. She can use that money to buy property in her name. 

6. i need further elaboration on your below query: 

if a real owner purchase a Benami Property under the name of benamdar and after some time if the real owner dies.. the the property still remains benami..


?

if brother has given money to sister out of his known sources of income then sister can purchase the property in her name . 

2) you are correct that Property can be held in the name of a brother or sister or any other lineal ascendant or descendant, only if it is held jointly with the real owner. 

3) real owner purchases property in name of benamidar and owner dies property real property still remains benami 

it would be benami if property purchased in name of Daughter in law  

2) if bought in sister name only it would be benami property 

3) if property purchased in 1992 with known sources of income in name of daughter in law then would not be benami property 

NO. it will be self acquire property.

Show me where it is written - should be held jointly.

NO. When payment is made from known source of income, It`s not benami transaction.

A property bought with a gifted amount cannot be treated as a benami property. 

It is a typographical error 

If property purchased in name of daughter in law it would be benami property 

No it's not benami transaction if you have paid from the known sources. 

Once you have given money as gift to your sister, there ends the transaction.

With that money she may do anything, i.e., either purchase any immovable property or she may even lodge it in a fixed deposit for the purpose of interest.

Therefore it cannot be considered as a benami transaction.

Under the old Benami law the government could only acquire the benami property for which a consideration had to be paid. However, under the newlaw once a property is declared as 'benami' it will vest with the government without payment of any consideration.

Benami Transactions (Prohibition) Act, 1988 is an Act of the Parliament of India that prohibits certain types of financial transactions. The act defines a 'benami' transaction as any transaction in which property is transferred to one person for consideration paid by another person.

The act bans all benami transactions and gives the government the right to recover property held benami without paying any compensation.

3.  No, it cannot be termed as benami transaction, the property so purchased shall be his own and absolute 

It appears that you have misinterpreted the law in this regard.

You have give money to your sister as a gift then that becomes her own money.

Therefore the property purchased by her subsequently in that amount also cannot be considered as benami property  instead it will be known as her own and absolute property.

The act came into force on 5 September 1988. Although benami transactions are now illegal, the act had limited success in curbing them.

The act "prohibits illegal benami transactions, and provides imprisonment up to seven years and fine for violation of the Act which may extend to 25% of the fair market value of the benami property.

The phrases what you have mentioned in your previous posts do not contribute to the meaning of benami transaction or benami property.

Dear 

The property purchased with the money your sister gets as gift from you will not be counted as benami property as the money gifted to her by you will be her money and she can purchase anything from that money.

Property purchased in name of daughter in law or any other relative with your money will be counted as benami property.