Main leakage is in the real estate rural and urban. The properties are valued low and there is no one to question. Even the declared values as per the government are low. So the the purchaser has to shell out considerable amount of money in un accounted money. This generates black money and loss of taxes to the government. There is a massive amount of money in this. This money flows to politicians and the bureaucracy. The common man looses.Why dont we follow the system that is available in the USA and modify to our requirements. more
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My experience Chennai is different. With the ONLY aim of maximizing their stamp duty collections, govt has kept the so called GUIDELINE value higher than the market rate in many localities, though it is the other way in some places too. With income tax laws based on capital gains guideline, many of us are affected because of this: Though we receive a low value for the land sold, we are forced to pay a huge tax! Who is in play here? Center or state? I agree that a lot of black money has been playing for long in this field. But who is responsible for that, in addition to a few greedy private players and ineffective corrupt officials and politicians? Whoever it might be, the most affected persons are the so called "common man", who goes to vote always with a lot of hope. Remember that, this class of voters are tax payers, do not collect payment for voting, and do not mostly have any party affiliation as they sincerely believe in remaining law abiding citizens! Is it the way of rewarding them? If this continues the same way, even without the so called communist rule, we are only going to land in unruly revolution times, ensuring tough time for future generations. Is that a real and correct gift from us the oldies? more
Feb 13
In addition , since there is no Income Tax on Agricultural Income , many held bulk Extent of Lands with their Black Money in their and , Binamy names without notifying their purchase of Lands to the Governments as dictated by Lay and all the State governments are also backed up and being in support of such Businessmen . Here is Mountains of Wealth concealed and , the Income Generated leaving off the issue of Industrial Development since 1990 - 95 please . No government is interested to Reform in this field . In fact , Income Tax on Agricultural Income including income from commertial cropping from above 20 Acres land , shall be taxed since it is the income from lands which in deed fallen under the Ceiling Limit . more
Feb 13
