Streamline the property prices to control black money, by using realistic Circle Rates.
For controlling Black Money, the government should start with streamlining the property prices. In India, property transactions involve Huge Exchange of black money, because declared value of property is always very low compared to the market price (or the actual transaction price). The best way of doing so is by using Circle/Area Rates based on which stamp duty should be paid for executing any sale transaction. These circle/area rates should be reviewed quarterly to align with the latest market prices. Advantages include,
- Lesser money to dealers in property transactions
- Property prices will decrease
- More stamp duty means more revenue for government
- NRIs/PIOs having only white money will be able to invest in real estate
- Salaried people earning only white money will be able to invest in real estate which is at present mostly beyond their reach more
- Lesser money to dealers in property transactions
- Property prices will decrease
- More stamp duty means more revenue for government
- NRIs/PIOs having only white money will be able to invest in real estate
- Salaried people earning only white money will be able to invest in real estate which is at present mostly beyond their reach more
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As per my research so far, I concluded that increase in circle rates will result in property prices coming down. This is because demand decreases due to increase in white money value (due to high circle rate). So this step of increasing circle rates will have positive impact in terms of economy growth and reduction in black money. more
Feb 17
In Delhi, circle rates are around 25% to 60% of the market value. Hence majority transactions (more than 90%) involve exchange of cash for the amount exceeding declared value. Another reason is to save on property tax. This makes real estate an investment heaven for people having ample black money. Simplest way to curb this is by increasing the circle rates reasonably. Governments should at least take basic and easy steps to stop circulation of black money, especially investment opportunities. more
Feb 17
To stop cheating in Real estate / Builder/ Properties.- key concept http://vishesh2014.blogspot.in/2014/01/to-stop-cheating-in-real-estate-builder.html more
Feb 16
1. The Circle Rates or the presently based raes are the same. But, the Government Market Rates and the Open Market Rates will definitely differ each other since no one agree to purchase or sell with the Govt. specified Rates. The Govt. specified market rates are the resonable and factual rates based on the land values that to be. This is ruled to enable every needy to have House Site or, agricultural land at reasonable rates. 2. The Open Market rates which are at places many time more than the Govt. Market rates is to make the Wealthy to race on rates. But, it does not mean that there shall be a lesser price on the Regd. Documents. It is all apenly made-up. 3. It is an open secret allowed in the rule . However, it does not mean that it shall be a Black-money. In my openion, beyond 60% of property sales have been only on While money only inspite of the fact that the Regd. Value is different and the really paid value is differently being more than double. 4. About 30 to 40 % properties only being with Black money earned some by Mal-practices and the other by Evading the Taxes. 5. Above all, as you are also aware, on all the Building Properties , the Registrars will inspect the property and arrive at the Value OF HE PROPERTY FOR COMPLETING REGISTRATION ON THAT FIXED RATE. THIS ISSUE IS THUS OPENLY OPEN & IS MAINTAINED INEVITABLY. more
Feb 16
