MUMBAI: In Mumbai's real estate market, cash transactions are still prevalent during transactions. The system of demanding an illegal cash payment still exists in many pockets of the city though many of the bigger developers now accept the full payment by cheque.
Historically, black money became a reality when unrealistically high income tax rates were slapped on people. Those trying to save some of what the taxman would take, invested in instruments like real estate. In the 1970s, builders used to take 80% in cash and 20% as a cheque from property buyers. A decade later, it was 60% cash and 40% as a cheque payment. That was after tax rates were lowered. Read more
Source : timesofindia.indiatimes.com
