The successful negotiation and agreement with Govt. regarding Taxes is really a winning situation for the investors under the current scenario.
Fair Market Value is better for us as a tax payer rather than current DC Rates. You would not pay any Gain Tax if you buy and sell s property in the same financial year as Fair Market Value will remain the same. Gain Tax is imposed on the difference between Purchase and Sale Prices.
But if we want to maintain DC Rates, then more of our white money will become black as we would be posing to buy and sell your property at (less) DC Rates rather than Fair Market Rate.
The real issue is not the New Tax Rates, as they would not make much difference as compared to Previous Tax Rates. But the real issue is the confusion among investors regarding additional amount of tax they would have to pay in a single property transaction.
Fortunately, the new agreement with Govt. has cleared the dust, and the situation remained almost the same with just a little more taxes.
But unfortunately, due to ill informed discussions by some of the members are maintaining and creating further confusion. I would request my friends to avoid adding confusion based on assumptions and unfounded apprehensions.
