Re: Property tax reforms can fund our cities
- Revaluation of properties at frequent intervals is also compulsory for payment of correct amount of stamp duty and prevention of generation of black money in property transactions. If the sale/purchase of property is registered at lower value (which is beneficial to the purchaser as he is required to pay less stamp duty and to the seller as he saves capital gains tax) balance of deal is paid in cash which results increase in 'black money' absorption in properties. Such undervaluation also affects bank loans as the banks provide housing loans on the registration amount. An honest person who cannot arrange black money but who is eligible for bank loan, cannot buy house property in the city because of the undervaluation.