Why Realty Sector Contributes To Black Money In India?

Therefore, both sides (buyers and sellers) can receive incentives to minimize the price in order to avoid paying huge taxes and pay the amount in “black” money. The amount is the variation between the actual and the declared amount.

But, it is believed that soon government will resolve such non-transparent transactions after the new bill is passed, which may bring in a central property regulator and the land cost may come down by 5 percent.

3) Opaque land records:

In India, maximum land records are unclear and mainly piled up in inaccessible places and most of the ownership of such land are either under litigation or disputed property.

Also, less reliable online ownership data and lack of proper documents make it difficult for buyers as well as sellers to go for any kind of property transaction with complete surety.

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