Navina

What is black money? What is the problem in giving a builder black money. One builder said that he would negotiate if we give a percentage in black money.

veeemkay

Stop being a Racist!!!!!! Black money!!! (Just kiddin)

Have u seen the TATA Tea ka new add.
"Khate jaa Khayte jaa... Desh ki band bajate jaa"

Blakc money has the effect of Desh ki Band bajaying!!!!!

VK

ttt43

what is black money? we have to first define that.

1. ill-gotten money : from bribes and illegal businesses(drugs, smuggling, etc. etc.), fraud, chori, etc.
2. The money on which tax is not paid

whoever is doing #1 should be in jail.

But I believe most people are talking about #2, and since it is not clear where the tax money is spent, it should be the right of taxpayer not to pay tax.

vrmadhu

When a builder/investor asks for money to be paid to him in cash & not by cheque he will not account for that sum of money & hence will not pay tax on that & that is black money.

We should avoid such dealings.

Sansei

When poor people r worrying abt food prices,
Aam admi is looking for good roads,schools, and a affordable roof.
The sic Govt r spending crores of ruppees on self aggrandisement trip by installing self statues from the tax payers money.

Shameless leaders and their cohorts.

realacres

If you have B-money & if you are getting a good deal, you should go ahead & buy. Bang the Govt., in any case do you think that the money is used for public good? Better we pocket our own money through mutual understanding rather than fill coffins of ministers who only make statues of themselves & interested more in BCCI & come from Italy.

I have friends who under-pay tax but donate large sums to NGOs & other social organizations. This way the money is saved from going in babu-mantri pockets & used for the betterment of society too.

This way, it is direct, no 'dalles' in between.

Navina

I completely agree with you realacres.

These ministers should be prosecuted first to set an example, instead of simply advertising on tv channels urging the common citizens to pay taxes.

I do not have money that fits into definition#1. All my money is hard earned and saved diligently through the years and is 100% legal. I do not have hoards of cash sitting at my home. Most of times barely 100 rupees in my purse for public transport. But in case I get a good deal I may think of withdrawing money from my bank account and pay by cash. But is there any problem with this method. For instance when trying to resell property later or any other problems.

realacres

There is no risk at all as you are buying a apartment at price less than what you can easily afford, just make sure that on paper the rates are according to ready reckoner rates which are much,much less than market prices.

All the deals to whom I was witness to had B-money component in it. So it's normal. Go ahead & buy but just make sure that all the B-money is not paid in advance. Pay everything in white till 'agreement to sale' & remaining B-money during the day of 'sale deed' in some hotel or best in a car (moving car prefered).

veeemkay

I would slightly differ from real in this case.
If u have all White then better to have the complete sale deal as White...

Because when you will sell your flat.. if at all... then that time you might some component in black as well ...!!!! WHy should you convert ur White to Black this way.!!!

Or if you decide to take all white then.... the appreciation on paper for your flat will become huge and you will land up paying more in taxes to keep all your money White...

I think an example will help here.

Lets say You buy apartment worth 10 lacs.. and you pay all ur money white but in agreement 7 lacs and 3 lacs in cash. which the builder uses a black.

When later you sell your flat.. lets say of 20 lacs.. then the value that will be used for capital gain will be 7 lacs and not 10 lacs.. so if u have to avoid tax then again either you have to take part Black money OR pay higher capital tax on {(20-7)with the adjustments alowed under law.}!!!!

So for the benefit of Builder you have converted your white money to black money.!!!! NOT GOOD!!!

I hope i am right here Real..

VK

Navina

hmmm, the builder says that he will negotiate only if I'm willing to pay part by cash. Otherwise now as the property is inside the city area, the price is too high for me and I have to drop it rightaway. So let me see how good a deal I can get. Based on that I will take a decision I think.