Mumbai flat deal viral: A home buyer in Mumbai was asked to pay Rs 80 lakh in cash for a flat worth Rs 4.31 crore. The seller wanted this black money to save tax. The honest buyer expressed his frustration with the system on social media.
Mumbai: The story of a man who bought a house in Mumbai with his hard-earned money and honestly paid taxes has gone viral on social media. His experience shows how the current system of the country creates problems for honest taxpayers. Sharing his story on Reddit, this man said that he and his wife were looking for a house for themselves in Mumbai for the last one year.
Eventually, they liked a 1,070 square feet flat in Kandivali East. The owner of the flat quoted its price as Rs 4.31 crore including all taxes. After much bargaining, the person agreed to pay up to Rs 4.21 crore, but the owner refused. But the reason for the deal breaking was not just the difference in price.
The man was shocked when the owner put forward a condition which upset him. The owner wanted that out of the total deal of Rs 4.31 crore, Rs 80 lakh should be given to him in the form of cash i.e. black money. The owner’s plan was to show the price of the flat as only Rs 3.50 crore instead of Rs 4.31 crore in the property papers (deed), so that he could save tax. This demand disappointed the home buyer, because he had to convert his hard-earned money into black money for this house.
He wrote, “I am a salaried person, my tax is already deducted through TDS. We are living amidst poor infrastructure and on top of that people are asking us to arrange Rs 80 lakh in cash. I am completely fed up with all this.”
As soon as this post went viral on social media, people reacted fiercely. Most of the people advised him not to get involved in this black money issue and look for some other property. Some also pointed out that if he understates the price on paper, he himself will incur huge losses in the form of capital gains tax when he sells the flat in future. At the same time, some users gave interesting advice and said that it is better to invest Rs 4.3 crore in fixed deposit or bond and live in a rented house with the interest on it.