Is black money normal in real estate?
I enquired with one of the developers in Bangalore near electronic City. The property cost is 64L for 1200sft. They want 50L as black and only 14L will be on registration paper as white. Is it normal in Bangalore to buy any property? Will it cause any problems in tax filing? I'm a bit hesitant to go for black money. Please suggest..
It's true. It's common. Quoting higher on paper will cost you more because the registration charge is a percentage of the value on paper. The 14L in your case is only on paper. Nobody quotes the real value on documents.
Would you purchase with this cost?
I think it is the same story everywhere. If you would emphasise on all online transfer, then they may ask for 84 lakhs. So the buyers too go for black money route, it benefits both the sides
It is not advisable to give so much in black. No one is trustworthy and in future if you want to resell, you will have to pay a lot of tax on the profit or again you have to ask for black money.
You got the right point , for the same reason I dropped.
Yeah, it’s very common in real estate. Unless you got a really good builder/real-estate developer, it is very hard to find someone who would accept all white. And yes, 64 L even for a plot of 1200 sq ft sounds too good. Are you sure it’s A khata?
