Ineffective Tax Amnesty schemes

Ouch...that is bad.

Never heard about this. There is no black money in NGOs here : giving to a NGO is tax deductible, and people are asking a receipt to join to their tax report...

@vandana7 This is not good. You need a law to make things clear.

@LadyDuck Yes, it is quite impossible in Europe, but apparently not in India. But I cannot agree with @vandana7 : if the state suppresses the taxes, maybe the houses will be declared at their real value, but the state will have to find the money lacking from this tax by creating another one elsewhere. And a tax on a gain does not hurt a lot.

What she is describing exists everywhere : people are lowering the value of a house when they sell it to pay less taxes, and are getting a part of the price in cash. It is more difficult in Europe, as cash withdrawals are tracked in the EEC, and the tax administration tracks also the average price of houses in each area. During centuries in France the tax administration could use a preemptive right if they were thinking that a house was under-evaluated : they were buying the house and were selling it for the state. It has been suppressed in 1997 due to a new European jurisprudence condemning France for this. The result is that now they can do a tax adjustment without to have to buy the house if they think that the sale price was too low in the neighborhood.

@topffer The cash withdrawals are also tracked here and anyway you have to pay the property through a notary and he cannot accept cash, not to mention that he could be considered responsible if the price of the transaction was different from what stated. We have parameters for the different villages, if you sell lower than the average you can be sure they will ask you plenty of questions.

@vandana7 Hi Vanny, I did not know what you meant by black. lol I agree as the government gets enough of our taxes and shouldn't be taxed on the sale of a house.

@Marcyaz ... Black money is the money which is not visible...not accounted for, because no tax is paid on it.. :)

Oh Marcy...how are you doing? Hugs.. What I proposed is...if you sell the house, whatever is the profit you get should not be taxed. Otherwise, people would be inclined to show lower profits and keep the rest of the money as cash or what we call black.

Exactly...so that they keep their monies in the country remove capital gains tax and see how the profits return.

@karjatwala ..Once capital gains tax is out of the way, India would be the safe haven..lol

@vandana7 Or even remove the monies to safe havens outside India