Curb on Black Money.

Thanks for your email regarding above subjected matter.The maximum amount of Black money

is generated through sale and purchase residential and commercial properties rates while going for registration with concerned departments.

Suggestion is to reduce the rate of stamp duty for sale or purchase of properties.All the work shall be done through electronic system.Even all payments should be remitted through bank only.

Hope you shall discuss the above two points for getting more suggestions from Local Circle members. more

Helpful Transforming India Aug 16

Viewed by 401

Asif Khatri

There's one more thing to note... Now consider the following example taking into account the recent advertisement by CIDCO for affordable housing (http://www.cidco.maharashtra.gov.in/pdf/Press_ad_Swapnapoorti_English.pdf) Let us consider that a person belonging to EWS of our society wants to apply for this scheme and he has a monthly income of say Rs.15,000 (considering that his income should not exceed Rs.16,000 per month as per the criteria defined by CIDCO for this scheme). Now taking into account the total tenement of a 1BHK flat admeasuring 28.63 sq. m. (308.17 sq. ft.) for this category of housing as Rs.15,78,300, the EMI which shall be paid by this person will be Rs.15,783 per month (a rough calculation of Rs.1,000 as EMI per Rs.1,00,000 of loan taken from any bank). This is hypothetically considering that he gets 100% loan. Now that his total monthly income is Rs.15,000, he will have to strive a bit hard to pay Rs.15,783 as his EMI toward this so called affordable house. But what happens to his monthly family expenditure? From which source of income will he provide food to his family? From where would be adjust fees for his children? From where would he get his medical expenses? From where would be save for his future? Now my question is how this scheme can be termed as ‘affordable housing’ for the EWS? Similar will be the case for LIG category where the applicant’s monthly income has to be between Rs.16,001 and Rs.40,000. Can Mr. Bhatia shed some light on this and show a way forward to people in purchasing these so called ‘affordable houses’? I would be eagerly awaiting to receive a favourable reply from your end. Thanking you. Yours truly, Asif M Khatri Citizen of India more

Aug 17

Asif Khatri

Firstly, let me ask you a simple question which may have a very complex answer... "Why are residential properties so exorbitantly priced?" As a layman, my understanding is that the land which is bought/purchased by the builder/developer has come to him/her with 'added' costs. Firstly, the government should curb the menace/corruption at the buying & selling stage of the land or the property which is to be developed or re-developed. The price of the land has to be controlled. Once this is done, all other costs shall fall in place correctly. As a citizen of India, belonging to a Middle-Class family and residing in Mumbai, I cannot even think of buying/purchasing a flat in Mumbai or nearby satellite towns. My income does not support the EMI structure which I will have to pay for buying even a 1RK flat, forget about 1BHK flat. Further more, I cannot even apply for MHADA or CIDCO flat buying/purchasing schemes through lottery as these flats too have now become out of reach of people like me, especially with respect to the income group. Now where do people like me go in search for buying a decent flat? Can Mr. Bhatia kindly guide and address this issue? Thanking you. Your's truly, Asif M Khatri, Citizen of India. more

Aug 17

Dhananjay Burnwal (None)

Reducing registry charges and bringing in transparency is something Govt can do without any hassle just by ignoring small greed of money , I would like few more suggestions which as I think may help large scale use of black money in this field- (a) Strict Registration of Property Dealers like an investment agent who will be issued with a code number to do business. He will also sign an affidavit in property transaction and on false affidavit he may be black listed to do further business. (b) Use of strict method of identification e.g AADHAR or Pan Card to identify Seller and Buyer and a Pan India Registry to list property holder's name. (c) Using Google Map to identify property as much as possible an it's linkage in terms of its axis. more

Aug 16

Sudarshan Goyal

Bhatiaji's comment/suggestion has merit. more

Aug 16

Mohan Bhagwat

I agree fully with Mr. T D Bhatia since sale purchase of properties involves rather the govt. policies on payment of stamp duty and difference in circle rates and market rate force the involved to adopt malpractices. Recently a blaring example of how agricultural land helps in generating black money was highlighted rather it is known to well informed. The case in point is of a MP(lady) from Maharashtra showing crores of rupees generated from a small piece of land held on her name!Experts comment that even a well irrigated land in India under best climatic conditions cant yield that much income under what so ever conditions .So it is a gimmick to avail of no income tax on the black money generated from other sources and to claim for exemption showing it as income from agricultural land. This mismatch and the wrong tendencies ( helped by the system -policies) need be curbed in the bud so that poor and sincere tax payers do not feel the step motherly treatment by the government. The agricultural income may be suitably taxed leaving marginal and poor land holders. more

Aug 16