A white paper on eradicating black money and world poverty. It presents a integrated view on black money in real estate, unemployment, poverty, government deficit, corruption, inflation and financial markets and a possible solution through a very simple policy change on how real estate is transacted.
Black money refers to funds earned through illegal or underground economic activities that are untaxed. India generates the most black money in the world at $1,456 billion, mostly through corruption, tax evasion, and money laundering. Much of this black money is stored in Swiss bank accounts and moved using hawala networks. Recovering black money could repay India's foreign debt 24 times over and boost the economy tremendously by adding to GDP. However, black money also fuels poverty, inflation, and hinders development. Measures like amnesty schemes, simplifying tax laws, and increasing enforcement could help reduce the generation of black money.
Indian black money refers to undisclosed funds and income earned through illegal means that have not been taxed. Estimates suggest over Rs. 7,280,000 crores of Indian money is deposited in foreign banks, especially Swiss banks. While exact numbers are unknown, Swiss banking officials say Indians are among the largest depositors of illegal foreign money in Switzerland. In 2010, India revised tax agreements with Switzerland to facilitate investigations into black money held in Swiss accounts. A whistleblower provided Wikileaks with a list of famous Indians alleged to have stashed money from activities like mining, stock market manipulation, and drug dealing in Swiss banks since the 1970s.
International students in Australia live in illegal boarding houses and work more hours than permitted by their visas in order to cut costs, as public transportation expenses and ineligibility for travel concessions strain budgets. Unable to afford regular housing and transportation, many students resort to shadow economy work and accommodations. Petitions to gain travel concessions have not been effective due to small participation. The financial struggles of international students are underrecognized.
This paper estimates the size of shadow economies in 162 countries from 1999 to 2007 using econometric modeling. It finds that on average, the shadow economy accounted for 38.4% of GDP in Sub-Saharan Africa, 36.5% in transition countries in Europe and Central Asia, and 13.5% in high-income OECD countries over this period. Additionally, the authors observe a clear negative trend, with the average shadow economy across all 162 countries declining from 34.0% of GDP in 1999 to 31.0% in 2007, a reduction of 3 percentage points. The main drivers of shadow economic activity are identified as the tax burden, labor market regulations, quality of public services, and conditions in the official economy
Black money refers to untaxed currency from the shadow economy. It is caused by corrupt politicians and bureaucrats, a complex tax structure, overregulation, and criminal activities. The consequences of black money include decreased government revenues, lower quality public services, higher taxes and inflation, and difficulties with monetary and fiscal policy. Controlling black money involves converting it to declared white money through amnesty schemes or demonetizing high-denomination bills. However, preventing black money through tax simplification, fewer regulations, increased banking transactions and oversight is a better long-term solution than temporary conversion measures.
The document summarizes key aspects of the Undisclosed Foreign Income and Assets (Imposition of Tax) Bill, 2015 in India. It discusses (1) the background and objectives of the bill which are to tax undisclosed foreign income and assets and punish those generating illegitimate money, (2) key features of the bill including penalties for concealment of foreign income/assets and criminal liability for tax evasion, and (3) important definitions related to the bill such as "resident", "undisclosed foreign income and asset", and rules around computing total undisclosed income and disallowing expenses/losses against such income.
Black money refers to money generated through secret, unreported activities to avoid taxes. This creates a parallel economy that runs counter to social objectives. Sources of black money include control/licensing systems, tax structures, political donations, and ineffective tax enforcement. The impacts of black money include misdirected resources, worsened income distribution, large unreported economic segments, and funds transferred abroad, as well as corruption. Estimates put the amount of black money in India at Rs. 3,54,000 crores.
Black money refers to funds earned through illegal or underground economic activities that are untaxed. India generates the most black money in the world at $1,456 billion, mostly through corruption, tax evasion, and money laundering. Much of this black money is stored in Swiss bank accounts and moved using hawala networks. Recovering black money could repay India's foreign debt 24 times over and boost the economy tremendously by adding to GDP. However, black money also fuels poverty, inflation, and hinders development. Measures like amnesty schemes, simplifying tax laws, and increasing enforcement could help reduce the generation of black money.
Indian black money refers to undisclosed funds and income earned through illegal means that have not been taxed. Estimates suggest over Rs. 7,280,000 crores of Indian money is deposited in foreign banks, especially Swiss banks. While exact numbers are unknown, Swiss banking officials say Indians are among the largest depositors of illegal foreign money in Switzerland. In 2010, India revised tax agreements with Switzerland to facilitate investigations into black money held in Swiss accounts. A whistleblower provided Wikileaks with a list of famous Indians alleged to have stashed money from activities like mining, stock market manipulation, and drug dealing in Swiss banks since the 1970s.
International students in Australia live in illegal boarding houses and work more hours than permitted by their visas in order to cut costs, as public transportation expenses and ineligibility for travel concessions strain budgets. Unable to afford regular housing and transportation, many students resort to shadow economy work and accommodations. Petitions to gain travel concessions have not been effective due to small participation. The financial struggles of international students are underrecognized.
This paper estimates the size of shadow economies in 162 countries from 1999 to 2007 using econometric modeling. It finds that on average, the shadow economy accounted for 38.4% of GDP in Sub-Saharan Africa, 36.5% in transition countries in Europe and Central Asia, and 13.5% in high-income OECD countries over this period. Additionally, the authors observe a clear negative trend, with the average shadow economy across all 162 countries declining from 34.0% of GDP in 1999 to 31.0% in 2007, a reduction of 3 percentage points. The main drivers of shadow economic activity are identified as the tax burden, labor market regulations, quality of public services, and conditions in the official economy
Black money refers to untaxed currency from the shadow economy. It is caused by corrupt politicians and bureaucrats, a complex tax structure, overregulation, and criminal activities. The consequences of black money include decreased government revenues, lower quality public services, higher taxes and inflation, and difficulties with monetary and fiscal policy. Controlling black money involves converting it to declared white money through amnesty schemes or demonetizing high-denomination bills. However, preventing black money through tax simplification, fewer regulations, increased banking transactions and oversight is a better long-term solution than temporary conversion measures.
The document summarizes key aspects of the Undisclosed Foreign Income and Assets (Imposition of Tax) Bill, 2015 in India. It discusses (1) the background and objectives of the bill which are to tax undisclosed foreign income and assets and punish those generating illegitimate money, (2) key features of the bill including penalties for concealment of foreign income/assets and criminal liability for tax evasion, and (3) important definitions related to the bill such as "resident", "undisclosed foreign income and asset", and rules around computing total undisclosed income and disallowing expenses/losses against such income.
Black money refers to money generated through secret, unreported activities to avoid taxes. This creates a parallel economy that runs counter to social objectives. Sources of black money include control/licensing systems, tax structures, political donations, and ineffective tax enforcement. The impacts of black money include misdirected resources, worsened income distribution, large unreported economic segments, and funds transferred abroad, as well as corruption. Estimates put the amount of black money in India at Rs. 3,54,000 crores.
Black money refers to wealth that is unaccounted for and on which taxes have not been paid. It is estimated that over $1.4 trillion in illegal Indian funds are stored in foreign bank accounts and tax havens. The accumulation of black money has significant negative impacts, including less tax revenue for the government, inflation, poverty, corruption, and distorted economic growth. Proposals to reduce black money include penalties, voluntary disclosure programs, international cooperation, and citizens taking personal responsibility by refusing to pay or accept bribes.
The document discusses the shadow economy, which includes legal production of goods and services that are deliberately concealed from authorities. Reasons for participating include avoiding taxes, minimum wages, or administrative procedures. The shadow economy includes monetary transactions like tax evasion, as well as non-monetary transactions like bartering and do-it-yourself work. Causes of the shadow economy include high taxes, regulations, and corruption. The shadow economy impacts equity, market competition, and tax systems. Recommendations to address it include reducing the tax burden, reforming social security systems, making administrations more efficient, and decreasing regulation.
The document discusses black money, which refers to funds earned through illegal or underground economic activities and not taxed. It notes some sources and movement of black money, such as through hawala systems or depositing in Swiss bank accounts. Some impacts of black money are slow country progress, unequal wealth distribution, recession, inflation, and corruption. Suggested measures to combat black money include international coordination, awareness campaigns, political donation regulations, transparent governance, and individual action.
Corruption is a serious problem in India, which tops lists for black money worldwide. Several major scams like 2G and Commonwealth Games have involved large amounts of illegally gained money. An estimated 70 lakh crores ($1 trillion) is held in foreign bank accounts, enough to eliminate India's foreign debt or distribute 1 lakh ($1,333) to each of 45 crore poor citizens. Common forms of corruption include fake medicines, tax evasion, judicial corruption, and within the armed forces and media. Citizens can help by educating themselves, distributing information, refusing to pay bribes, and organizing awareness events.
The document discusses black money in India, which refers to assets that have not been reported to tax authorities. It was generated through illegal means like smuggling or tax evasion, and also legal activities manipulated to avoid taxes. Estimates of black money's size use input-output, monetary circulation, and survey approaches. If black money returns to India, it could reduce fiscal deficits and inflation but also increase inequality and impact banking systems and currency value. The government faces challenges in obtaining details of offshore accounts and assets and ensuring foreign investments are not laundered black money.
Street vending is an important source of livelihood in Hyderabad. The document provides a case study of street vending in Hyderabad, including demographics of vendors such as the majority being male, between 25-35 years old, and having primary level education or less. It describes the products sold, places of residence, storage of unsold goods, and average daily incomes. Vendors purchase goods from wholesale markets and face harassment from police through bribes and confiscation of goods. Consumers appreciate street vendors for saving time and money on purchases.
During this lecture Eddy Willems will give you his view on the latest evolution of the underground economy. Eddy will give you an overview of the main tools used by most cybercriminals. He especially will explain why people always seem to be fooled into
those criminal traps. After the presentation you will have the opportunity to ask any specific question about any aspect in security and especially about the underground economy 3.0.
---
More about G DATA Security Summit: https://www.gdatasoftware.com/30ysummit
---
Eddy Willems is Security Evangelist at G DATA.
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AI Transformation Playbook: Thinking AI-First for Your BusinessArijit Dutta
I dive into how businesses can stay competitive by integrating AI into their core processes. From identifying the right approach to building collaborative teams and recognizing common pitfalls, this guide has got you covered. AI transformation is a journey, and this playbook is here to help you navigate it successfully.
NIMA2024 | De toegevoegde waarde van DEI en ESG in campagnes | Nathalie Lam |...BBPMedia1
Nathalie zal delen hoe DEI en ESG een fundamentele rol kunnen spelen in je merkstrategie en je de juiste aansluiting kan creëren met je doelgroep. Door middel van voorbeelden en simpele handvatten toont ze hoe dit in jouw organisatie toegepast kan worden.
Presentation by Herman Kienhuis (Curiosity VC) on Investing in AI for ABS Alu...Herman Kienhuis
Presentation by Herman Kienhuis (Curiosity VC) on developments in AI, the venture capital investment landscape and Curiosity VC's approach to investing, at the alumni event of Amsterdam Business School (University of Amsterdam) on June 13, 2024 in Amsterdam.
Black money refers to wealth that is unaccounted for and on which taxes have not been paid. It is estimated that over $1.4 trillion in illegal Indian funds are stored in foreign bank accounts and tax havens. The accumulation of black money has significant negative impacts, including less tax revenue for the government, inflation, poverty, corruption, and distorted economic growth. Proposals to reduce black money include penalties, voluntary disclosure programs, international cooperation, and citizens taking personal responsibility by refusing to pay or accept bribes.
The document discusses the shadow economy, which includes legal production of goods and services that are deliberately concealed from authorities. Reasons for participating include avoiding taxes, minimum wages, or administrative procedures. The shadow economy includes monetary transactions like tax evasion, as well as non-monetary transactions like bartering and do-it-yourself work. Causes of the shadow economy include high taxes, regulations, and corruption. The shadow economy impacts equity, market competition, and tax systems. Recommendations to address it include reducing the tax burden, reforming social security systems, making administrations more efficient, and decreasing regulation.
The document discusses black money, which refers to funds earned through illegal or underground economic activities and not taxed. It notes some sources and movement of black money, such as through hawala systems or depositing in Swiss bank accounts. Some impacts of black money are slow country progress, unequal wealth distribution, recession, inflation, and corruption. Suggested measures to combat black money include international coordination, awareness campaigns, political donation regulations, transparent governance, and individual action.
Corruption is a serious problem in India, which tops lists for black money worldwide. Several major scams like 2G and Commonwealth Games have involved large amounts of illegally gained money. An estimated 70 lakh crores ($1 trillion) is held in foreign bank accounts, enough to eliminate India's foreign debt or distribute 1 lakh ($1,333) to each of 45 crore poor citizens. Common forms of corruption include fake medicines, tax evasion, judicial corruption, and within the armed forces and media. Citizens can help by educating themselves, distributing information, refusing to pay bribes, and organizing awareness events.
The document discusses black money in India, which refers to assets that have not been reported to tax authorities. It was generated through illegal means like smuggling or tax evasion, and also legal activities manipulated to avoid taxes. Estimates of black money's size use input-output, monetary circulation, and survey approaches. If black money returns to India, it could reduce fiscal deficits and inflation but also increase inequality and impact banking systems and currency value. The government faces challenges in obtaining details of offshore accounts and assets and ensuring foreign investments are not laundered black money.
Street vending is an important source of livelihood in Hyderabad. The document provides a case study of street vending in Hyderabad, including demographics of vendors such as the majority being male, between 25-35 years old, and having primary level education or less. It describes the products sold, places of residence, storage of unsold goods, and average daily incomes. Vendors purchase goods from wholesale markets and face harassment from police through bribes and confiscation of goods. Consumers appreciate street vendors for saving time and money on purchases.
During this lecture Eddy Willems will give you his view on the latest evolution of the underground economy. Eddy will give you an overview of the main tools used by most cybercriminals. He especially will explain why people always seem to be fooled into
those criminal traps. After the presentation you will have the opportunity to ask any specific question about any aspect in security and especially about the underground economy 3.0.
---
More about G DATA Security Summit: https://www.gdatasoftware.com/30ysummit
---
Eddy Willems is Security Evangelist at G DATA.
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High-Quality IPTV Monthly Subscription for $15advik4387
Experience high-quality entertainment with our IPTV monthly subscription for just $15. Access a vast array of live TV channels, movies, and on-demand shows with crystal-clear streaming. Our reliable service ensures smooth, uninterrupted viewing at an unbeatable price. Perfect for those seeking premium content without breaking the bank. Start streaming today!
https://rb.gy/f409dk
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AI Transformation Playbook: Thinking AI-First for Your BusinessArijit Dutta
I dive into how businesses can stay competitive by integrating AI into their core processes. From identifying the right approach to building collaborative teams and recognizing common pitfalls, this guide has got you covered. AI transformation is a journey, and this playbook is here to help you navigate it successfully.
NIMA2024 | De toegevoegde waarde van DEI en ESG in campagnes | Nathalie Lam |...BBPMedia1
Nathalie zal delen hoe DEI en ESG een fundamentele rol kunnen spelen in je merkstrategie en je de juiste aansluiting kan creëren met je doelgroep. Door middel van voorbeelden en simpele handvatten toont ze hoe dit in jouw organisatie toegepast kan worden.
Presentation by Herman Kienhuis (Curiosity VC) on Investing in AI for ABS Alu...Herman Kienhuis
Presentation by Herman Kienhuis (Curiosity VC) on developments in AI, the venture capital investment landscape and Curiosity VC's approach to investing, at the alumni event of Amsterdam Business School (University of Amsterdam) on June 13, 2024 in Amsterdam.
L'indice de performance des ports à conteneurs de l'année 2023SPATPortToamasina
Une évaluation comparable de la performance basée sur le temps d'escale des navires
L'objectif de l'ICPP est d'identifier les domaines d'amélioration qui peuvent en fin de compte bénéficier à toutes les parties concernées, des compagnies maritimes aux gouvernements nationaux en passant par les consommateurs. Il est conçu pour servir de point de référence aux principaux acteurs de l'économie mondiale, notamment les autorités et les opérateurs portuaires, les gouvernements nationaux, les organisations supranationales, les agences de développement, les divers intérêts maritimes et d'autres acteurs publics et privés du commerce, de la logistique et des services de la chaîne d'approvisionnement.
Le développement de l'ICPP repose sur le temps total passé par les porte-conteneurs dans les ports, de la manière expliquée dans les sections suivantes du rapport, et comme dans les itérations précédentes de l'ICPP. Cette quatrième itération utilise des données pour l'année civile complète 2023. Elle poursuit le changement introduit l'année dernière en n'incluant que les ports qui ont eu un minimum de 24 escales valides au cours de la période de 12 mois de l'étude. Le nombre de ports inclus dans l'ICPP 2023 est de 405.
Comme dans les éditions précédentes de l'ICPP, la production du classement fait appel à deux approches méthodologiques différentes : une approche administrative, ou technique, une méthodologie pragmatique reflétant les connaissances et le jugement des experts ; et une approche statistique, utilisant l'analyse factorielle (AF), ou plus précisément la factorisation matricielle. L'utilisation de ces deux approches vise à garantir que le classement des performances des ports à conteneurs reflète le plus fidèlement possible les performances réelles des ports, tout en étant statistiquement robuste.
Enhancing Adoption of AI in Agri-food: IntroductionCor Verdouw
Introduction to the Panel on: Pathways and Challenges: AI-Driven Technology in Agri-Food, AI4Food, University of Guelph
“Enhancing Adoption of AI in Agri-food: a Path Forward”, 18 June 2024
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Solution for black money
1.
Solution
to
black
money
and
perhaps
world
poverty
Automatic
price
discovery
in
Real
Estate
market
is
a
simple
fix
to
a
big
problem
of
black
money
and
persistent
high
inflation.
Revised
-‐
December
2011
2.
2
Solution
to
Black
Money
Executive
summary
It
is
a
well
established
fact
that
India’s
parallel
economy
is
more
than
50%
and
the
money
earned
from
such
tax
evasion
is
parked
in
Real
estate.
Also
the
Real-‐
state
sector
is
about
88%
of
India’s
wealth
and
acts
as
the
most
legitimate
way
of
parking
black
money
or
money
earned
from
corruption
or
illegal
activities.
The
ease
and
lucrativeness
of
being
able
to
park
such
money
influences
the
investments
in
favor
of
real
estate
and
away
from
legitimate
businesses
that
create
jobs
and
products
in
the
economy.
This
not
only
leads
to
slower
expansion
of
businesses
but
also
resulting
in
India’s
unusualy
persistent
high
inflation.
It
sets
a
chain
reaction
of
tighter
monitory
policy
and
high
interest
rates
and
further
reducing
the
incentive
to
invest
in
businesses
(due
to
high
payback
periods)
and
making
real-‐estate
the
most
favored
option.
The
effort
so
far
from
government
like
reducing
stamp
duty,
and
capital
gain’s
tax
has
resulted
in
no
results.
Even
the
best
deterrent
in
form
of
37i
(chapter
20c)
was
further
removed
in
2002
to
let
the
situation
completely
loose.
It
is
proposed
that
all
the
properties
that
get
registered
are
opened
for
next
14
days
with
10%
increments
by
anybody.
It
would
make
black
money
transactions
in
real
estate
impossible.
It
is
by
far
the
most
comprehensive
and
yet
a
simple
policy
change
with
far
reaching
immediate
benefits
by
putting
a
stop
on
black
money.
To
restore
our
falling
economy
it
is
imperative
to
divert
investments
to
businesses,
job
creation
and
stop
our
persistent
inflation.
It
will
also
increase
tax
collections
of
both
stamp
duty,
income
tax
and
all
other
taxes.
It
will
reduce
budget
deficits
and
strengthen
the
rupee
and
help
reduce
the
interest
rates.
A
double-‐digit
growth
is
easily
achievable
before
we
loose
the
shining
India
completely.
It
is
now
further
proposed
to
file
a
PIL
for
the
discrimination
suffered
by
a
pure
‘white
man’
and
‘white
companies’
in
real-‐estate
transactions
in
India.
Price
discovery
in
real
estate
September
2011
3.
3
Solution
to
Black
Money
Table
of
Contents
EXECUTIVE
SUMMARY
2
WHY
BLACK
MONEY
NEEDS
TO
BE
ERADICATED?
4
WHY
REAL
ESTATE
IS
IMPORTANT?
5
IT
IS
THE
CAUSE
FOR
LOWER
GDP
AND
POVERTY
5
CAUSE
FOR
HIGH
INFLATION
7
HOW
DOES
IT
CAUSE
MORE
CORRUPTION?
8
HOW
DOES
IT
CREATE
POVERTY?
9
WHAT
HAS
GOVERNMENT
TRIED
SO
FAR?
12
A
SIMPLE
FIX
FOR
REAL
ESTATE
TRANSPARENCY
13
CONCLUSION
16
ANNEXURE
I
17
50C
17
Price
discovery
in
real
estate
September
2011
4.
4
Solution
to
Black
Money
Why
black
money
needs
to
be
eradicated?
At
a
five-‐day
anti-‐corruption
convention
in
2009
at
Doha,
United
Nations
said
the
cost
of
political
corruption
to
governments
around
the
world
is
about
1.6
trillion
dollars1
each
year.
This
does
not
include
the
black
money
generated
by
the
businesses
and
the
tax
losses
there
off.
The
loss
due
to
this
has
a
spiraling
impact
on
public
welfare
and
public
policy.
The
black
money
in
India
alone
is
stated
to
be
50%2
of
the
GDP
of
India
i.e.
another
750
billion
dollars
a
year.
It
means
$250
billion
in
taxes.
It
is
roughly
equal
to
the
Indian
budget
of
$278
billion3.
1
http://digitaljournal.com/article/281907
2
Global
Financial
Integrity,
Centre
for
International
Policy,
Washington
DC
3
Indian
Budget
Reins
in
Spending
Increases
–
The
Wall
Street
Journal,
Feb
26th
2010
Price
discovery
in
real
estate
September
2011
5.
5
Solution
to
Black
Money
Why
real
estate
is
important?
India
has
88%4
assets
as
non-‐financial
and
the
debt
being
as
low
as
3%.
The
financial
assets
only
account
for
13%
of
the
total
wealth
of
the
nation.
It
shows
that
out
of
the
3.5+
trillion
dollar
wealth
of
the
country,
most
of
it
is
in
the
real
estate
market.
It
is
non-‐worthwhile
to
prove
how
rampant
the
black
money
is
in
the
real-‐estate
sector.
Indian
Prime
Minister
Mr.
Manmohan
Singh
at
the
Today
Conclave
admitted
"I think as far as black money in real estate is concerned,
unfortunately that is a reality and one way out of this would be to lower the
stamp duties," 5
Tata Housing Development Company Managing Director and CEO Brotin
Banerjee in the same meeting remarked - “There has been rampant use of
black money in the real estate sector.”
The
problem
is
reaching
epidemic
proportions
can
be
judged
from
the
recent
news
coverage
it
has
been
receiving:
The Economic Times reported - “Property market: Biggest sink of black
money” – 7th November 2010
The Times of India in Goa reported - “Goa real estate boom fuelled by
black money” – 20th July 2011
The
Business
Today
Mumbai
reported
real
estate
as
-‐
“The black money
vault” – 20th March 2011
The Business Standard reported: “Black money trail: Dubious real estate
deals under I-T scanner” –19th April 2011
It is a well-documented fact that the secondary market real estate deals today are
generally done in more than 50%6 hard cash.
It
is
the
cause
for
lower
GDP
and
poverty
The
development
of
the
economy
is
directly
linked
with
the
development
of
the
financial
markets
as
evidenced
by
the
below
mentioned
comments
in
the
Global
Wealth
Data
Book
2010
by
Credit
Susie.
4
Credit
Suisse,
Global
Wealth
Data
Book
2010,
page
76.
5
http://www.deccanherald.com/content/146794/lower-‐stamp-‐duties-‐can-‐
check.html
6
More
than
50
percent
of
the
value
transacted
in
the
secondary
market
for
real
estate
in
Mumbai
is
made
in
black
money
(Jha,
1999)
Price
discovery
in
real
estate
September
2011
6.
6
Solution
to
Black
Money
“Other
features
of
the
survey
evidence
from
developing
countries
capture
important
real
differences.
Very
high
shares
of
non-‐financial
wealth
are
found
for
the
two
low-‐income
countries
in
our
sample,
India
and
Indonesia,
reflecting
both
the
importance
of
land
and
agricultural
assets
and
the
lack
of
financial
development.
On
the
other
hand,
the
share
of
non-‐financial
assets
in
China
is
relatively
modest,
possibly
because
the
value
of
housing
is
reported
net
of
mortgage
debt,
and
because
urban
land
is
not
privately
owned.
In
addition,
there
has
been
rapid
accumulation
of
financial
assets
by
Chinese
households
in
recent
years.
Debts
are
very
low
in
India
and
Indonesia,
again
reflecting
poorly
developed
financial
markets.”
Also
the
complex
mechanism
for
investment
preferences
is
well
presented
in
a
paper
in
2008
“Financial
Repression,
Bank
Deposits,
Real
Assets
and
Black
Money”
in
which
Mr.
Gurcharan
Das
elaborates
why
the
black
money
influences
the
investment
choices
of
individuals.
It
may
appeal
to
common
sense
that
how
people
would
get
stuck
to
an
asset
class
due
to
inability
to
park
the
black
money.
This
puts
an
artificial
ceiling
on
the
investments
available
to
the
Primary
and
secondary
financial
markets
which
are
the
growth
factory
for
jobs
and
production
(GDP)
in
the
economy.
The
profit
generated
through
government
or
consumer
spending
is
converted
into
black
money
by
tax
evasion
and
ends
up
getting
parked
in
the
real–estate
market.
Thus
starving
the
financial
instruments
or
the
financial
market,
which
creates
sustained
jobs
and
forms
the
supply
curve
of
an
economy.
Such
inelastic
supply
of
an
economy
results
in
inflation
and
is
usually
met
with
increase
in
interest
rates
from
RBI.
Eventually
further
starving
the
mass-‐market,
thin-‐
margin
businesses,
with
higher
capital
costs,
more
risk
and
less
capital
for
growth.
People
would
rather
save
a
30%
direct
tax
and
another
10-‐20%
indirect
tax
by
not
making
invoices
and
straight
away
park
the
money
in
real
estate
for
immediate
gains
without
getting
noticed
while
corrupting
and
derailing
the
entire
system
of
sustained
business
expansion.
Longer
pay
back
periods
due
to
high
interest
rates
compared
to
better
returns
on
deposits
and
real-‐estate
deter
large
investments
into
businesses.
A
promoter
ends
up
spending
substantial
time
in
managing
the
transaction
personally
without
delegating
to
maintain
secrecy.
Lower
profits
and
turnover
in
books
further
restricts
objective
view
of
business,
opportunities
for
Debt
and
equity
participation.
Price
discovery
in
real
estate
September
2011
7.
7
Solution
to
Black
Money
Inelastic
Supply
due
to
parking
of
black
money
Prohit
Fear
of
getting
Caught
Black
money
Fudged
books
Park
in
Real
Less
delegation
estate
Less
expansion
Fear
to
scale
up
No
investments
Immediate
Corruption
No
debt
Less
Jobs
saving
of
50%
No
listing
Inhlation
Increase
in
interest
Rates
Higher
Risk
Cause
for
high
Inflation
Every
year,
there
is
a
developmental
effort
from
the
government
like
building
roads
or
schemes
like
rural
employment,
which
may
be
very
well
conceived.
It
ends
up
playing
havoc
with
the
economy.
The
10,000s
of
crore
ends
up
pushing
the
demand
which
then
in
turn
temporarily
increases
prices
and
the
profit
from
the
inflation
ends
up
getting
parked
in
the
real
estate
as
apposed
to
the
financial
market,
thus
starving
the
supply
of
capital
and
making
it
very
inelastic
in
long
term.
These
developmental
efforts
are
normally
met
by
increase
in
real
estate
prices
that
can
very
easily
be
seen
from
the
history
of
our
economy.
The
government
ends
up
controlling
the
inflation
with
increase
in
interest
rates
and
further
reducing
the
access
to
capital
and
negatively
impacting
supply.
The
increase
in
interest
rates
directly
decreases
the
profitability
of
businesses
and
increases
the
risk
of
expansion.
They
especially
make
the
mass-‐market,
low-‐
price,
non-‐branded
businesses
vulnerably
due
to
already
being
on
thinner
margins.
The
ineffective
strategy
can
be
very
well
be
correlated
with
the
fact
that
India
is
a
global
anomaly
in
terms
of
having
persistent
high
inflation.
The
Economist
in
its
article
“Bringing
tears
to
Indian
eyes”
remarks
–
“In rich
countries (with the possible exception of Britain), deflation remains
the bigger worry, but India’s inflation is also substantially higher
than in other emerging economies.”
It continues to say -
{Indian policymakers tend to underestimate this trend. In April
2009, the governor of the country’s central bank was quoted as
saying that he expected WPI inflation to be at 4% in March 2010. In
fact, it was 10.2% that month, and stayed at or above 10% in
every month till July. And while the RBI does not formally target
Price
discovery
in
real
estate
September
2011
8.
8
Solution
to
Black
Money
inflation, there are plenty who think that it has been too slow to
tighten monetary policy. It has in fact been raising rates regularly
since March last year, but only very gradually. Some reckon it
should have tightened faster. The RBI is, of course, wary of choking
off India’s rapid recovery from the slowdown in growth during the
global economic crisis. Its governor, D Subbarao, said on January
17th that "For the Reserve Bank the challenge is to calibrate
monetary policy taking into account the demands of inflation
management and the demand of supportive recovery”.}
"The shift of the Indian household sector from deposits to inflation
hedges such as property and gold is creating a liquidity crunch in
the banking sector that’s unlikely to be solved in the near future,”
Kristine Li, senior director of Asia-Pacific credit strategy at Royal
Bank of Scotland Group Plc, told Bloomberg. “If banks’ loan growth
decelerates, asset quality concerns are likely to return.”
How
does
it
cause
more
corruption?
The
situation
may
be
better
understood
by
an
analogy
of
honeybees.
There
are
several
types
of
opportunities
for
corruption
spread
across
the
country
like
how
different
types
of
flowers
exist
in
an
area.
There
may
be
multiple
colonies
of
honeybees
that
prefer
different
types
of
flowers.
It
may
include
businessmen,
legislative,
executive,
judiciary,
NGOs
and
people
from
all
walks
of
life.
The
bees
are
uncountable
and
difficult
to
catch.
The
nature
of
bees
is
to
collect
honey
or
create
wealth.
There
are
always
honeycombs
where
all
the
honey
gets
parked.
Examples
from
Current
Scenarios
• Honeycomb
-‐
People
buy
large
areas
of
agricultural
land
by
parking
black
money
just
before
a
government
acquisition
and
end
up
converting
in
white.
• Flower
-‐
In
listed
companies
promoters
sell
company
properties
and
pocket
black
money,
evade
tax
and
dupe
shareholders.
We
have
already
established
that
Real-‐estate
is
the
biggest
honey-‐comb
of
the
economy
and
especially
India
with
87.6%
of
India’s
wealth
stored
in
it.
It
also
is
the
biggest
sink
for
black
or
corruption
money.
How
much
honey
can
be
parked
in
gold
or
cash?
A
25,000
crore
scam
is
equal
to
10
tones
of
gold.
It’s
very
difficult
to
store
such
huge
quantities
of
gold
without
the
fear
of
getting
caught
or
killed.
How
much
honey
has
been
parked
in
Swiss
banks
?
A
very
well
made
out
empirical
study
was
published
recently
by
Dev
Kar
from
the
Global
Financial
Integrity,
Centre
for
International
Policy,
Washington
DC.
He
dispelled
many
myths
about
the
illicit
money
flows
to
Swiss
banks.
Price
discovery
in
real
estate
September
2011
9.
9
Solution
to
Black
Money
“It
is
estimated
that
a
total
of
$213.2
billion
was
shifted
out
of
India
between
1948
and
2008,
or
about
17.7%
of
India’s
GDP
at
end-‐2008.
Applying
rates
of
return
on
these
assets
based
on
the
short-‐term
US
Treasury
Bill
rate,
the
total
gross
transfers
of
illicit
assets
by
Indian
residents
amount
to
$462
billion
at
the
end
of
2008.”7
The
outflow
compared
to
real
estate
parking
is
quite
small
if
we
see
it
on
per
year
basis.
So
it
can
easily
be
inferred
that
most
of
the
black
money
is
being
parked
within
India
and
that
too
in
the
Real
Estate.
Easy
access
and
ability
to
park
black
money
makes
honeybees
multiply.
It
attracts
honeybees
to
the
top
positions.
Since
one
cannot
control
the
spread
of
flowers
or
catch
the
honeybees,
it
is
only
wise
to
remove
the
honeycombs
in
the
area
and
the
honeybees
will
have
no
choice
but
to
go.
How
does
it
create
poverty?
An
economy
is
measured
by
the
GDP
of
the
country.
GDP
is
broadly
the
demand
and
supply
of
the
country.
Lets
take
a
new
perspective
on
how
economy
can
grow.
Lets
assume
that
majority
of
the
people
if
given
the
ability
to
buy
and
consume
a
product/service
(non
luxury)
that
they
can
afford
would
normally
choose
to
consume
if
given
enough
wealth.
It
is
also
then
fir
to
assume
that
the
majority
of
demand
is
a
function
of
income
or
wealth
the
people
have.
Some
as
such
the
demand
or
need
to
products
is
either
latent
or
active
at
any
given
time
depending
on
their
income.
So
basically,
if
the
economy
can
provide
enough
jobs
then
there
is
enough
demand
to
consume
any
products
and
services.
So
the
bottleneck
is
really
the
jobs
or
the
wealth
spread.
Now
if
the
government
starts
creating
jobs
and
the
demand
starts
rising
then
the
prices
should
start
increasing
and
also
the
profit
opportunities.
There
should
then
be
a
matching
response
by
increase
supply
and
book
profit.
The
increase
in
supply
should
also
lead
to
job
creation
and
thus
create
a
powerful
self-‐sustained
reaction
of
growth
of
economy.
However
in
reality,
an
increase
in
supply
would
always
need
access
to
cheap
capital.
India
only
has
$3.5
trillion8
dollars
of
capital
over
a
population
of
1.2
7
An
Empirical
Study
on
the
Transfer
of
Black
Money
from
India:
1948-‐2008
by
Dev
Kar
from
Global
Financial
Integrity,
Centre
for
International
Policy,
Washington
DC
8
Credit
Suisse,
Global
Wealth
Data
book
2010,
pg
72
Price
discovery
in
real
estate
September
2011
10.
10
Solution
to
Black
Money
billion
as
compared
to
$54.6
trillion9
in
America
for
300
million
populations.
There
is
a
difference
of
astonishing
223
times
when
we
also
take
into
account
the
financial
component
only.
The
disparity
in
wealth
is
only
23.48
times
if
we
only
take
non-‐financial
wealth
as
comparison.
This
stark
disparity
in
our
asset
classes
throws
the
economy
off
balance
when
it
comes
to
job
creation
through
further
investments.
Further
to
make
it
worse
the
debt
taken
by
the
public
in
India
is
mere
4%
of
the
total
wealth.
So
majority
of
the
capital
remains
locked
away
in
the
real-‐estate
sector
and
does
not
even
get
deployed
as
collaterals
or
loans.
With
high
interest
rates
the
risk
of
doing
business
goes
up
and
profitability
in
the
stock
market
goes
down.
Real-‐estate
becomes
an
even
more
attractive
option
as
a
safe
heaven
and
especially
for
tax
evasion.
This
disrupts
the
chain
reaction
for
job
creation.
It
leads
to
less
spread
of
income,
less
taxes,
less
public
welfare
projects
and
only
concentration
of
wealth
into
properties
in
established
cities
and
no
jobs
for
the
homeless.
GDP
of
a
nation
should
normally
be
25%
to
32%
of
the
country’s
financial
wealth.
What
has
perhaps
remained
unnoticed
is
that
India
it
is
already
running
at
127%,
which
is
several
magnitudes
higher.
It
only
shows
the
lack
of
capital
in
the
economy.
It
has
some
of
the
following
implications:
Stock
Market
or
financial
assets
are
under
performing
as
compared
to
GDP.
• Businesses
not
getting
listed.
• Investment
in
stock
market
comparatively
low.
• Valuations
of
businesses
listed
are
very
low.
• Lower
valuations
or
margins
are
either
because
of
o Black
money
being
squeezed
out.
o Interest
rates
are
too
high.
o Low
pricing
mentality
due
to
price
sensitive
demand.
It
is
to
be
noted
that
the
GDP
does
not
include
the
50%
transactions
done
in
black
money.
So,
the
ratio
is
actually
over
200%
and
almost
10
times
normal.
Developing
the
financial
wealth
To
create
more
businesses
or
employment
we
need
to
either
increase
the
profitability
to
increase
corresponding
valuations
by
plugging
leakages
of
black
money
or
redirect
investments
into
financial
assets.
The
wealth
or
the
capital
of
the
country
seems
too
small
compared
to
GDP
in
India.
It’s
therefore
needed
that
the
black
money
portion
of
the
real
estate
be
recognized
and
made
available
for
loans
and
capital.
9
Credit
Suisse,
Global
Wealth
Databook
2010,
pg
75
Price
discovery
in
real
estate
September
2011
11.
11
Solution
to
Black
Money
Developing
the
non-‐financial
wealth
The
capital
or
the
fuel
of
the
supply
curve
is
embedded
in
the
real
estate
as
already
seen.
So,
it
is
apt
for
government
to
allow
development
of
this
asset
class
through
FDI.
However,
with
the
rampant
corruption
and
involvement
of
black
money
in
this
ever
so
important
sector,
it
is
natural
for
the
foreign
investors
to
find
other
destinations,
which
they
can
deal
with
easily
and
remotely.
So,
it
is
most
important
to
clean
up
this
sector
to
unclog
the
hidden
potential
and
develop
it
further
at
all
costs
for
a
smoother
expansion
of
the
economy
and
creating
jobs.
Poverty
a
closer
look
The
figures
for
India
are
disturbing.
At
number
16th
on
the
rankings
of
poverty
gaps,
and
housing
almost
41%
of
the
world
poor
(World
Development
Indicators
database),
there
is
a
lot
to
be
concerned
about.
There
are
1,26,700
Indians
who
are
classified
as
millionaires
(Capgemini,
Merrill
Lynch
Wealth
Management),
yet
a
sickening
80%
who
lives
on
less
than
two
US
dollars
a
day.
The
stark
contrast
between
the
rich
and
the
poor
is
probably
our
biggest
challenge
in
terms
of
designing
effective
social
and
economic
policies.
India’s
priority
must
become
its
poor
because
it
is
poverty
that
affects
the
majority
of
the
population.
Price
discovery
in
real
estate
September
2011
12.
12
Solution
to
Black
Money
What
has
government
tried
so
far?
The
government
has
done
a
brilliant
job
in
the
stock
market
by
way
of
demat
accounts,
policies,
procedures
and
electronic
exchanges.
It
has
also
tried
many
ways
to
control
the
black
money
in
the
real-‐estate
sector.
20C.
There
was
a
form
37i
required
under
Chapter
XXC.
It
used
to
act
like
a
crude
check
on
self-‐reporting
on
real
estate
transactions
by
inducing
fear
of
government
take
over
in
case
of
under
reported
prices.
It
was
introduced
in
1986.
It
gave
powers
to
the
government
to
acquire
the
land
if
it
thought
it
was
being
sold
below
the
market
price.
It
was
removed
in
2002
in
the
budget
as
a
tax
friendly
measure
by
the
BJP
government
under
269UP.
Once
gone,
the
real
estate
has
become
the
major
parking
method
for
all
money
collected
in
black
by
either
corruption
or
tax
evasion
with
no
way
of
tracing
it.
The
percentage
of
black/white
being
quoted
in
the
property
deals
has
substantially
risen
in
the
last
decade
and
so
has
properties
linked
with
corruption
cases
(10
times)10.
Why
it
was
really
removed
is
attached
under
Annexure
I
–
a
circular
from
CBDT
on
the
reasoning
behind
the
change
in
policy.
50C. (1) Where the consideration received or accruing as a result of the transfer by an
assessee of a capital asset, being land or building or both, is less than the value
adopted or assessed 91 [or assessable] by any authority of a State Government
(hereafter in this section referred to as the “stamp valuation authority”) for the
purpose of payment of stamp duty in respect of such transfer, the value so adopted or
assessed 91[or assessable] shall, for the purposes of section 48, be deemed to be the
full value of the consideration received or accruing as a result of such transfer.
This section however only applies capital gains tax at the circle rates and still does not
prevent the black money being part of the transaction.
10
http://www.prsindia.org/corruptioncasesindia.php
Price
discovery
in
real
estate
September
2011
13.
13
Solution
to
Black
Money
A
simple
fix
for
real
estate
transparency
Short
comings
of
XXc
• Requires
government
funds
• Requires
monitoring
and
not
automatic.
• Does
not
use
market
forces
and
is
subjective.
• Open
to
corruption
and
misuse
How
to
over
come
shortcomings
• Allow
public
to
bid
on
transactions
once
published
on
net
for
14
days
in
10%
increments.
It
will
act
as
price
check.
It
is
proposed
that
we
reenact
the
chapter
XXc
and
also
involve
the
public
in
bidding
to
make
the
process
completely
automatic.
The
mechanism
will
completely
erase
the
black
money
being
quoted
in
the
real
estate
transactions.
Today’s
technology
is
fully
capable
to
make
the
whole
process
online
with
all
documents
scanned
and
made
available
to
public
for
intervention
to
make
sure
that
the
deal
is
not
priced
too
low.
Some
of
the
Benefits:
• It
will
be
a
deathblow
to
big
corruption.
– It
will
make
it
difficult
to
store
the
dirty
money.
– It
is
too
risky
to
store
1000s
of
crores
in
cash
of
kind
at
home.
• Properties
will
stop
trading
in
black.
• Will
reduce
wealth
divide
by
having
high-‐income
people
to
pay
more
taxes.
• Banking
will
be
healthier
in
long
term.
• Tax
collections
from
capital
gains
and
declared
income
will
both
go
up
substantially.
• Land
revenue
will
go
up.
• Cleans
up
the
majority
of
the
game
and
encourages
fair
play
across
both
business
and
government
sections
of
the
society.
• The
businesses
will
find
it
hard
to
park
dirty
money.
• Cash
in
the
system
will
reduce
and
so
will
counterfeit
notes
and
shift
towards
digital
economy.
• All
transactions
and
ownership
of
land
going
forward
will
become
traceable.
• Will
result
in
less
property
disputes
and
thus
access
to
more
capital
in
the
economy.
• It
benefits
the
overall
economy
by
making
access
to
capital
easier.
Price
discovery
in
real
estate
September
2011
14.
14
Solution
to
Black
Money
Ensuring
Price
Stability
It
is
recommended
that
the
property
transaction
be
listed
on
the
website
as
a
price
check
once
an
approval
request
is
received
from
the
seller
and
buyer
of
an
agreed
transaction
like
the
way
it
was
done
in
XXc.
It
is
necessary
to
maintain
price
stability
by
making
the
public
bidding
mechanism
as
a
price
check
and
not
an
upfront
public
auction.
Ensuring
Reliability
of
deals
The
paper
trail
for
land
ownership
and
proofs
should
be
made
available
to
public
for
inspection
before
the
bidding/price-‐check
process.
A
standard
needs
to
be
laid
on
the
documents
needed
to
proceed
for
sale
of
a
real
estate.
The
government
may
also
choose
to
mediate
the
payment
process
of
the
winning
bidder.
There
may
be
a
requirement
for
security
deposit
before
a
person
or
a
licensed
property
dealer
can
bid.
In
future
the
land
recorder
should
be
dematerialized
or
at
least
maintained
electronically
to
reduce
fraud
and
disputes
and
increase
transparency
like
the
stock
market.
Ensuring
privacy
The
buyer
and
bidder
details
should
be
kept
confidential
till
the
deal
gets
finally
approved.
Comparison
20c
50c
Proposed
Description
Government
can
Properties
can
not
Public
bidding
will
acquire
properties
be
registered
ensure
there
is
no
valued
lower
below
circle
rates
black
money
in
a
transaction.
Status
Discontinued
in
Active
New
2002
Price
Through
self-‐ Region
wise
Circle
Allow
public
Discovery/check
reporting
Rates
bidding
on
all
private
transactions.
Method
Fear
of
loosing
Controlled
rate
Market
forces
to
property
cards.
discover
real
price.
Government
Valuation
Circle
rates
have
Very
little
–
Effort
required
to
be
revised
Automatic
Price
discovery
in
real
estate
September
2011
15.
15
Solution
to
Black
Money
Short
comings
Valuations
are
Circle
rates
do
not
Rates
may
cumbersome
get
revised
timely.
temporarily
process.
reduce.
Rates
are
always
Government
funds
lower
than
market
can
be
misused
by
rates
collusion.
Does
not
account
Subjective.
for
value
construction
or
Title’s
might
be
design.
disputed
and
impact
the
value.
Does
not
include
special
features
of
plot
like
corner,
park
facing
etc.
Title
might
be
disputed
Government
Required
Not
required
Not
required
funds
Control
on
black
70-‐80%
30-‐60%
90-‐100%
money.
Tax
collections
High
Low
Very
high
Possibility
of
High
-‐
Low
–
A
state
Not
possible.
corruption/
government
may
government
may
inaccuracy
choose
not
to
choose
an
area
acquire
or
wrong
not
to
be
revised
valuation
in
collusion
with
builders
like
greater
noida.
Tax
declarations
Medium
Low
Very
high
(because
properties
will
be
going
cheap)
It
is
not
important
that
we
adopt
the
proposed
prognosis
(solution)
but
what
is
important
is
to
have
the
right
diagnosis
of
the
problem.
Only
then
an
appropriate
prognosis
can
be
created.
A
policy
change
to
the
effect
below
needs
to
be
passed
in
the
parliament,
so
that
the
executive
body
is
free
to
do
its
role
in
the
matter:
“The
chapter
XXC
will
be
applicable
again
from
1st
April
2012.
The
government
must
make
all
property
documents
available
to
the
general
public
on
internet
for
public
bidding
at
10%
increments
to
effect
automatic
price
discovery
and
transparency
for
a
period
of
14
days”
Price
discovery
in
real
estate
September
2011
16.
16
Solution
to
Black
Money
Conclusion
Indian
economy
currently
is
like
a
very
highly
powered
agricultural
truck
with
its
plow
stuck
too
deep
in
real
estate
black
money.
Automatic
price
discovery
in
real
estate
transactions
has
potential
to
eradicate
black
money
and
corruption
to
a
large
degree.
It
will
not
only,
increase
tax
collections
but
also
strengthen
the
capital
markets,
reduce
inflation
and
fuel
the
growth
of
India.
Once
the
black
market
gets
fixed,
it
would
be
possible
to
sustain
a
high
double-‐
digit
growth
for
the
next
few
decades
due
to
availability
of
capital
and
higher
valuations.
There
will
be
more
inclination
to
invest
in
financial
markets
and
will
help
new
IPOs.
The
question
we
should
ask
ourselves
is
that
how
long
can
India
live
without
a
super
strong
stock
market?
Why
should
FDIs
and
FIIs
trust
Indian
businesses
if
we
ourselves
choose
not
to
invest
in
it?
It
is
foreseeable
that
once
the
framework
and
policy
implications
are
adopted
and
the
benefits
realized
then
all
other
developing
nations
would
adopt
the
same.
This
does
have
the
potential
to
uplift
billions
from
poverty.
All
we
need
is
more
powerful
economies
that
spread
prosperity
and
development
for
a
better
future
of
humanity.
“Few small atoms can tilt the balance of power
And few simple thoughts can transform a nation.”
Price
discovery
in
real
estate
September
2011
17.
17
Solution
to
Black
Money
Annexure
I
Extracts of Circular No.8/2002 dated 27.08.2002 issued by CBDT
The scheme of pre-emptive purchase of immovable properties under Chapter
XX C abolished.
75.1 Under the existing provision contained in Chapter XX C of the Income tax Act,
any person intending to transfer immovable property in specified areas at values
exceeding specified amounts is required to file a statement in form 37 I before the
Appropriate Authority within the prescribed time before the intended date of transfer.
The transfer can be registered only if the Appropriate Authority does not pass an
order of pre emptive purchase of the property, and issues a no-objection certificate.
75.2 Since these provisions were causing procedural delays in registration of
transfers, and with a view to remove source of hardship for the tax payers, the Finance
Act, 2002 has, by inserting a new section 269UP in the Income tax Act, made the
provisions of the Chapter XX-C inapplicable in respect of any transfer of immovable
property effected on or after 1st July, 2002.
75.3 This amendment will take effect from 1st July, 2002
50C
37.1 The Finance Act, 2002, has inserted a new section 50C in the Income tax Act to
make a special provision for determining the full value of consideration in cases of
transfer of immovable property.
37.2 It provides that where the consideration declared to be received or accruing as a
result of the transfer of land or building or both, is less than the value adopted or
assessed by any authority of a State Government for the purpose of payment of stamp
duty in respect of such transfer, the value so adopted or assessed shall be deemed to
be the full value of the consideration, and capital gains shall be computed accordingly
under section 48 of the Income tax Act.
37.3 It is further provided that where the assessee claims that the value adopted or
assessed for stamp duty purposes exceeds the fair market value of the property as on
the date of transfer, and he has not disputed the value so adopted or assessed in any
appeal or revision or reference before any authority or Court, the Assessing Officer
may refer the valuation of the relevant asset to a Valuation Officer in accordance with
section 55A of the Income tax Act. If the fair market value determined by the
Valuation Officer is less than the value adopted for stamp duty purposes, the
Assessing Officer may take such fair market value to be the full value of
consideration. However, if the fair market value determined by the Valuation Officer
is more than the value adopted or assessed for stamp duty purposes, the Assessing
Price
discovery
in
real
estate
September
2011
18.
18
Solution
to
Black
Money
Officer shall not adopt such fair market value and shall take the full value of
consideration to be the value adopted or assessed for stamp duty purposes.
37.4 This amendment will take effect from 1st April, 2003 and will, accordingly,
apply in relation to the assessment year 2003 04 and subsequent years.
Price
discovery
in
real
estate
September
2011