Black money finds a home in Gujarat realty?

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Daily News & Analysis – Mumbai,India

Says Manan Choksi, a noted chartered accountant in the city, “The land owners are charged heavily on capital gains and they want to avoid the same. So the builder has to compulsorily take black money. The construction industry, labourers, material suppliers and professionals also evade taxes by taking part of the consideration in black.”

Choksi said the black money hurts the industry a lot. He pointed out that even today banks’ home loans only finance 100% of white money component of the price of the unit. “Salaried people don’t have black money. Fear of embezzlement for the entire chain and lack of accountability and transparency among others don’t clear price of the property which hurts the resale of the property,” he said.