Govt to offer black money whitening scope sans questions

The government is set to provide an opportunity for individuals to legalise undisclosed or ‘black money’ in the housing sector without facing inquiries, by paying regular taxes on the excess value of property transactions.

Under the proposed measure, if the actual purchase or sale value of land, buildings, or flats exceeds the value stated in the official deed, both buyers and sellers will be able to declare the difference voluntarily and legalise the undisclosed amount by paying income tax at the standard rate applicable to their individual tax category. 

The facility is expected to be included as a separate clause in the finance bill to be presented in the upcoming national budget for the 2026-27 fiscal year.

According to sources in the ministry of finance, once the tax is paid voluntarily, no questions will be raised and no further action can be taken against the declarant, irrespective of provisions in the Finance Act or any other existing law.

However, those against whom action has already been initiated under the Finance Act will be required to pay an additional 20 percent tax on top of the applicable rate on the excess amount. 

Individuals who have already been convicted by a court in connection with such transactions will not be eligible for the benefit.

The move is seen as a fresh attempt to bring undeclared assets into the formal economy, particularly in the real estate sector.