Monday, August 17, 2009

Black money falling flat

Good news for property buyers. The obnoxious black money, or the unaccounted cash component, for buying a flat is slowly fading out with buyers calling the shots in a market still being rebuilt after crumbling in last year’s financial storm.

Across Indian metros, more and more properties can now be purchased through the accounted money or white, thanks to the changed profile of the buyers and the government’s base price policy.

“According to Section 50 (C) of the Income Tax Act, one had to pay tax according to ready reckoner prices. If anyone pays below the current market price, he still has to pay tax as per the market rate,” says Vinod Sampat, a tax lawyer and consultant. An individual reinvesting the net proceeds from the sale of a house in another residential house is exempted from capital gains tax. This has given a big relief to many sellers who reinvest in real estate.
To read more, please, visit - The Economic Times

Do you mind paying "other charges" in cash?

OK. There are no more 60 - 40 terms of payments for the property in Pune real estate market. But we can't say that "cash component" has completely gone!

You know that there is one builder on Pashan Baner link road who demands Rs. 3 lakhs as "other charges in cash" for his ready possession flats. Do you mind paying your hard earned and tax paid money to the builder because those are his standard terms of business? Or would you happy to pay roughly 10 lakhs cash to the real estate investor for his unused flat in Kharadi. Which the investor is selling for less property price then the builder is asking for in the same project? Please, share your views in the comments.

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1 comment:

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