Rahul Mehta Gandhinagar LsCandidate

When TT comes, people will sell plots for Re 1 , and rest in gold !! And Govt will lose all stamp duty, capital gains tax and income tax, and get TT or only 2 paise !! Solution : pls focus on wealth tax.

Today, lets say A has a plot whose market value is Rs 1 crore and circle rate value is Rs 50 lakhs . Say A had bought plot for Rs 20 lakh in year 2000. Then indexation of Rs 20 lakhs will be Rs 30 lakhs. And so if A sells plot for Rs 1 crore, then A will pay 20% income tax = long term capital gains tax on (Rs 1 crore - Rs 30 lakhs) = Rs 70 lakhs = Rs 14 lakhs. And B will pay stamp duty of Rs 6 lakhs and since B has to show income of Rs 1 crore, on that income he would have had to pay some tax say at least Rs 20 lakhs or more. So total tax paid = Rs 14 lakhs + Rs 6 lakhs + Rs 20 lakhs = Rs 40 lakhs.

And if they sell for Rs 50 lakhs cheque and takes rest cash then tax collected will be

long term capital gains = 20% of Rs 20 lakhs = Rs 4 lakhs
stamp duty = 6% of 50 lakhs = Rs 3 lakhs
income tax on income of Rs 50 lakhs = about Rs 10 lakhs

Total = Rs 17 lakhs

So in existing tax regime, tax collected is Rs 17 lakhs to Rs 40 lakhs

And what if seller sells for Re 1 cheque and rest all cash? Then also income tax dept and stamp duty dept have powers to ASSUME that sale was Rs 40 lakhs, and collect taxes accordingly from buyer and seller. So no matter what, minimal tax will be collected as per today's laws.

Now if TT comes, the tax will go to not 2% = Rs 2 lakhs, but would become 2 paise. How?

In order to evade Rs 2 lakhs of tax, the buyer and seller will sell for Rs 1 cheque and rest by dollars. Now under new proposed TT regime, the TT department will have no power to make presumtions on minimal value of transaction, no power to go thru books and no powers to summon buyer-seller. So buyer and seller cant questions about gold they took or bought. The TT dept only looks at bank tarnsactions. And the bank tarsnaction is Re 1.

Also, persons can open gold accounts like we have gold certificate accounts. And give gold certificate as gift to each other. Now under TT regime, only bank transactions are taxed. The gift of gold certificates is via gold depository and NOT via bank. So no tax will be due.

Only way to stop this is to create TT-dept which iwll have power to make presumtions on value of all transfers and all transactions. Well, in that case, we are back to square one. All corruption in tax depts such as income tax, excise, sales tax etc is ONLY due to power to make presumption on value of sales, transfers, transactions etc If TT-dept is allowed to make presumptions

All in all, TT is TW = time-waste. And pls focus on wealth tax. Pls see my YT video on RightToRecallGroup channel , search for words tax, land OR wealth . Wealth tax of 1% on urand land above 250sqft per person will reduce land prices to 20% of what it is now, This will boost industry, trade, employment etc and so GDP will double in 3-4 years and without any raise in income tax rate, the income tax collected will double. With this, we can remove excise, service tax , sales tax, VAT etc. Only tax that will stay will be excise on vehicles to build roads and footpaths and customs.