Why do builders ask for black money while selling properties?

I m from mumbai and have seen a lot of builders asking for some black money (Avg- 30 to 50%) why is that….. what do they get with black money and what is advantageous to them this way???? also would like to know where does all this money go?

3 Replies to “Why do builders ask for black money while selling properties?”

  1. Black money is that money which is not shown to government for filing returns in Income Tax to show less profit black money is asked .Black go for further buying things in same manner by those people

  2. Every sale/purchase document of immovable property has to be registered. For registration it requires fees along with stamp duty. To avoid the said stamp duty which is based on the sale/purchase value, builders reduce the amount of white money so that they can pay less amount of duty. With the said black money they can do many illegal business transactions. Some times they can make white money out of the said black money. You will get the proper answer from your CA.

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