The costlier the property, the bigger chance of black money coming in, say brokers and lawyers
The costlier the property, the bigger chance of black money coming in, say brokers and lawyers
The recent development in the stamp duty and registration fees by the revenue department will adversely affect the real estate market. Industry experts believe that charging one per cent of the market value of the apartment as the registration fees might bring in more black money, a practice that was slowly finding its way out in real estate deals.u00a0
How black money comes in
The inflow of black money is bound to increase, according to brokers dealing with luxury properties. Explains Vibhoo Mehra. "A house buyer is the biggest miser in the world. He always wants to save money and with this new system coming in, the house buyer will surely ask for the cash component in it. So that he doesn't end up payingu00a0 high registration fees," says Mehra
Another broker who is finalising a five-crore deal in the western suburbs says, "Most probably, the buyer will have an agreement that is close to the ready reckoner value. So he doesn't have to pay Rs five lakh as registration fee to the government."
Advocate Vinod Sampat, President Co-operative Societies Residents, Users and Welfare Association agrees that there are chances of black money exchanges when it comes to costlier deals. "There are chances of black money inflow only if the deals are costlier. A deal worth Rs 75-80 crore will mean a fees of Rs 75 lakh, which surely is a huge amount," says Sampat.
Buyers may stay away
Dealers fear that buyers might keep away from the market because of the recent stamp duty change. An experts says, "No flat today costs less than Rs 60 lakh in the suburbs and the prices are in crores towards south Mumbai. This will surely affect the sales in the coming weeks."
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