The purchase and Sale of property in our life in India involves that the property is bought at a price, registered at a different price and resulting in loss of stamp duty, fregistration charges. Now, with Respect to capital gains we have to take into acoount the Cost of inflation index for the period the propriety held by us. In actual the income tax would not be much if we register, sell at sale price. But the majority practice in India is that we as a society inculging Government are very ignorant of corruption, bribe, under valuation etc.
Let's assume that the selling price of a property is rs. 1,25,000, 00 and the registered value is only Rs. 5,23,000 that is huge difference in the government value versus purchase price.
Apart from tax amount exchanged being evaded, even if it remains unaccounted results in transactions that result in taxes. For example the seller with that amount shall close his or her home loan, personal loan, buy electronic devices, buy land, buy gold and so on.. These transactions yield tax in the form GST.
Even unaccounted transactions Some times can generate taxes like above example.
But, as a society, state and county as a whole has to adopt genuine transactions.
As individuals we face so much Challenges to remain straight forward due to such Practices by the Society as a whole.
Hope things would change in the future.
No comments:
Post a Comment