Will Government Do This For Cashless Real Estate Deals ?
This petition had 41 supporters
1) Suppose a plot of 10000 sqft is having market value of Rs 1 Cr, before demonetization and its Government value is 40 lakhs. If the plot owner wants to sale the plot before demonetization, he will receive Rs 40 lakhs through Cheque,DD,RTGS transfer and will expect Rs 60 lakhs in cash (Black Money).
2) After demonetization, same plot owner is expecting same kind of deal from market, as stated in point no 1. But no buyer is available in market, which can pay Rs 60 lakhs in cash. Rather prospective buyer is ready to purchase same plot in total white payment mode and is offering less than 1 Cr to the plot owner, because the prospective buyer have to pay extra stamp duty and registration charges on Rs 60 lakhs, which was a cash part.
3) The plot owner is not ready to do the deal in total white payment mode, because he may get the offer below his expectations and he have to pay CAPITAL GAIN TAX of average of 20% on profit which he made by selling the plot. His profit is calculated by deducting his purchase value from the received consideration of the plot.( Rs 1Cr is received consideration – Rs 20 Lakhs is plot owner’s purchase value, at the time of purchase of plot = Rs 80 lakhs is his profit and on this, plot owner has to pay 20% CAPITAL GAIN TAX , which is Rs. 16 lakhs.) & on other side no buyer is available to purchase the plot in Black / White payment mode.
4) Looking to the scenario explained in point no 3, no deal is happening in Real Estate sector.
5) If Government removes CAPITAL GAIN TAX from any kind of property transactions, it will encourage the plot seller to move with cashless transaction and will also beneficial to Corporate Companies, Foreign Investors, Builders, to trade residential flats and commercial premises on total white payment mode, with the end user.
6) This will reduce the pocket investment of end user by 70%.
7) Will increase the loan amount of end user, to purchase such properties and also channelize the business of banks to give secured loans.
8) Will increase the revenue of Government through the collection of extra stamp duty and registration charges, which prospective buyer has to pay on cash part, which can be converting into white payment after removal of CAPITAL GAIN TAX. This amount of revenue is obviously more than the CAPITAL GAIN TAX collection, because of increase in number of transactions.(Turnover)
9) Allow the plot seller to invest the amount, which he have received through total white payment transaction mode, in any sector like, Automobile, Stock Market, Real Estate, Gold, Set Up of Industry, Trading, Agriculture, Infrastructure.
10) The plot seller should not allowed to make Fix Deposit of the amount, which he have received through total white payment transaction mode and no minimum bank interest is applicable for this amount, as the amount is deposited in bank account.
11) The plot seller should invest the amount in any sector within maximum period of 2 years, from the date of amount received, but he will not wait till 2 years, because of flourish market.
12) This decision will automatically kill the intention to generate Black Money and will also block all the options to rotate the Black Money.
13) People will automatically start cashless transactions.
14) Government need not to do exercise, on increase in Government valuation of the property, every year, because the total white payment consideration of the property is already 60 % to 70% more than Government valuation.
15) This decision will boost the market and will start immediate collection of revenue in Government treasury.
16) If this is not done, the current increasing percentage of unemployment will lose its patients and will be a cause of mischief in future.
17) Only this decision will start the money flow in market and create stability of job for existing employers, in any sector and also create additional employment in any sector, because the money is rotating in all sectors.
18) Before demonetization, if any FDI company is wanted to purchase property, it will not get because of cash demand from property seller and the company was forced to do Joint Venture with the property owner and property owner was successful to digest his Black Money in the scope of work under his head.
19) Now, after demonetization, FDI companies are interested to purchase the property in total white payment mode, but because of CAPITAL GAIN TAX, property owner is not moving with the opportunity.
20) Will this Government, in overnight, remove the CAPITAL GAIN TAX ? as like as declared the decision of DEMONETIZATION. or if the Government have solid plan to start rotation in the market, please start its implementation immediately, do not waste time, people have immediately accepted the decision of DEMONETIZATION.
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