In addition, NIPFP has also asked for the number of sale documents registered, registration and stamp duty paid and ready reckoner rates fixed in every area of the two cities. The inspector general of Registration and Controller of Stamps will submit these details to NIPFP.
The Central Board of Direct Taxes (CBDT), which falls under the Union Finance Ministry, has sought for the aforementioned information for its latest research known as 'Estimation of Unaccounted Incomes in India'. The CBDT commissioned the research in June 2011 with Delhi, Gurgaon and Noida, before turning it into a pan-India exercise.
The research aimed at exposing the extensive use of black money in property deals, which goes undetected owing to the difference in market prices and registry rates set by state governments.
An income tax official requesting anonymity says, “Large amount of cash related to property transactions goes unreported. This is because most buyers under-report transaction costs to save on registration amount, while sellers keep mum to evade capital tax burden.”
Developers also make some quick bucks by charging buyers for parking space that ranges from Rs 2-25 lakh, despite courts banning parking space sale. India’s unaccounted money varied from US$462 billion to US$1.4 trillion, according to the NIPFP-conducted first study in 1985.
Mission transparency campaign Incidentally, apex real estate industry body CREDAI launched a mission transparency campaign, after the FinMin sought details on property transactions to study the use of black money in the sector.
The objective of the campaign is to promote transparent property deals and protect the interest of all stakeholders, home buyers in particular. CREDAI national president Lalit Kumar Jain believes that this campaign will be a game changer cause in the history of real estate campaigns. A stringent code of conduct and vigilant regulations are imperative for transparent property dealings and to build a credible real estate industry.
The real estate industry is slated to touch US$180 billion by 2020. Jeeta Bandopadhyay |
The real estate sector is a big generator of black money. To have an idea on the unaccounted income generated by property deals across India, the National Institute of Public Finance and Policy (NIPFP) has asked for details of the three highest-value transactions, which took place in every area in Mumbai and
