Black money declaration to be just “a tip of the iceberg”
Tech investor T V Mohandas Pai terms the declarations of Rs 65,250 crore under the black money disclosure scheme as a “tip of the iceberg”. He feels the government now needs to demonetise Rs 1,000 notes and abolish capital gains tax on property and gold sales to drive more money into the formal system.
“Black money report released in Parliament says that 40 per cent of all black money generation happens in real estate. One major factor is capital gains tax. If capital gains tax is abolished, the seller will demand full cheque payment because he does not have to pay tax and the entire sector will be reformed in three years,” Pai said.
According to him, India has USD one trillion (Rs 70 lakh crore) of gold. “Total gold value of India at 25,000 tonnes is Rs 70 lakh crore”. India imports 750-1000 tonnes of gold every year.