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Real Estate

Here the black economy rages the fiercest. The seller wants to evade capital gains tax, the buyer transfer duty. Up to 60 per cent of the amount exchanging hands is in cash. Without black money, an Indian today cannot buy property from an individual owner. Astronomical prices are primarily due to black money chasing real estate deals. The malaise extends to rent too. To avoid income tax, the landlord gets part of the rent in cash, or as "electricity, water and other (tax-deductible) charges".

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