Prime Minister Narendra Modi demonetized Rs 500 and Rs 1000 notes on November 8th 2016. The aim of this move was to destroy corruption and terrorism in India fueled by black money in the economy. The demonetization of 86% of currency by value led to the growth of cashless transactions in India. In the absence of demonetization, this could have taken several years. The Modi Government has said that demonetization is just the first step in the fight against black money. More such steps could follow.
Now there is talk in the air. Perhaps the Modi Government plans to crack down on black money hidden in immovable properties. It's common knowledge that a lot of black money is hidden in property and gold. Would the Modi Government make Aadhaar compulsory for property transactions?
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Demonetization is done. The Modi Government has successfully implemented RERA and GST. Now Union Government Minister for Housing and Urban Development, Hardeep Puri, is hinting at a Government crackdown on Benami Property.
Its compulsory for you to link Aadhaar with bank account by December 31st 2017. You also have to link Aadhaar with PAN, mobile number, LPG connection and even mutual funds. Now, the Modi Government might just make Aadhaar compulsory for property transactions. The Modi Government can easily crack down on Benami property by making it compulsory to seed Aadhaar with property transactions.
Linking Aadhaar to property transactions could suck out black money hidden in real estate and help the crackdown on Benami Properties.
SEE ALSO: Aadhaar compulsory for insurance plans
If you take a look at the figures which have been compiled for IT raids, you will find that only 5-6% of the black money is hidden in cash. Most of the black money is hidden in gold jewelry and real estate. The Modi Government is well aware of this and has taken steps to crackdown on black money hidden in immovable property.
The Income tax department is keeping a close watch on all registered property valued at Rs 30 Lakhs or higher under the antibenami act in the fight against black money. The IT department has already attached 621 properties under the Benami Transaction Act. This law allows confiscation of properties, fines and even a jail term of up to 7 years.
See Also: BBMP Property Tax
The Modi Government through the smart implementation of RERA has strengthened the real estate sector. With the Benami Transactions (Prohibition) Act, it is now chasing black money hidden in real estate.
Yes, the Modi Government is really serious in its chase against black money. Black money hoarders are losing places to hide their ill-gotten wealth. The Government is closely monitoring real estate transactions in its crackdown against Benami Properties. Be Wise, Get Rich.
Mr. C S Sudheer is the founder and CEO of IndianMoney.com – India’s largest Financial Education Company. He started his career with ICICI Prudential Life Insurance and later on worked with Howden India. After his brief stint in Howden India, he moved on and incorporated Suvision Holdings Pvt Ltd which is the sole promoter of IndianMoney.com. He aims to build a nation that is financially literate with investment savvy citizens.
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