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ASSOCHAM - Cut down the registration fee by 50 percent to get rid of black money
Posted on: 15/Nov/2016 4:59:28 PM
ASSOCHAM (The Associated Chambers of the Commerce of India) has recommended that the registration charges in the real estate industry must be reduced by 50 percent as a strong step towards getting rid of the black money circulation in the country.
When the registration charges for residential and commercial complexes are brought down, ASSOCHAM observes that it will considerably reduce the number of people who indicate a lower value of the real estate being bought.
The main reason for the real estate industry flush with money is the high registration fee. A person who buys a flat at the cost of Rs. 1 to Rs. 1.50 Crores with the registration charges of 6-7 percent will have to spend an additional Rs. 10 Lakhs towards different government taxes, registration fee, and the lawyer’s fee.
The individual selling the place will have to pay capital gains tax as per the registered amount. So, the transaction that officially takes place is lesser that the actual transaction. This will benefit both the buyer and the seller.
Because of the factor explained above, all registrations in the real estate industry are lower than the real transacted value for a number of years. ASSOCHAM feels that in the event of reducing the registration fee, there would not be any need for the buyer and the seller to lower their actual transaction price.
However, the state governments will have to come forward themselves to reduce the registration fee by 50 percent. This would increase the revenue for the government. This will also reduce the somewhat dull business in this field. The General Secretary of ASSOCHAM, D. S. Rawat exchanged this information.
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