@@pragyasingh3291 this guy Kamath want every one to trade so that his Zerodha gets profit…93% traders lose life in trading. Realestate is better than trading.
Very true nikhil…nobody buys land in white money..if white money comes into picture land prices will drop drastically and will become affordable for people like us…
@@trira1171Indexation benefit have been restored upto a certain date. Beyond that date there is no indexation benefit. This is sad and a decision by government.
This was one of the best podcasts Nikhil Kamath Key Takeaways: 1. How 3 Bangalore Real Estate Brands Prestige, Brigade and Embassy started off 2. Starting small in any business will keep you rooted 3. Most businesses die in the 4th generation, so don't worry too much on legacy let the future generation decide what they want to do about. 4. In real estate you might have to bow your head in front of people who are irrelevant 5. EGO in business let's you lose in the game of entrepreneurship 6. Hang out with your competitors because there's enough for each one of us 7. Passion is over rated, being successful and making money from something you don't love is better than doing something you love and not being successful (in entrepreneurship) 8. Urbanisation in India is yet to happen, we are just tip of the iceberg 9. Fractional Ownership - How it works 10. Land Aggregation - Holding on to Land vs Developing it 11. Every City in India is like a country, has different set of approvals. & more to pen down, thanks to all four of you for making this happen.
That's because it's one of the fragile business to venture into. Any economic downfall of country starts with negative outlook of either banks or real estate business. So government plays safely by looking blindly at it and it's also one of the profitable business too which funds the political parties.
@@jayceekarpsaste nashe😂. Chutiya thodi hai wo ki 100crore salary leke 30 crore tax dega. No business owner takes this much amount as salary. All take stocks and such
Shocking this is so obvious and still government is not doing anything about it, I wanted to buy my first house, all inc my budget was 65-70l, had explored around 15-20 flats, every single builder asked around 20l+ cash.
Generally this happens with builders floor. The corporate builders usually agrees on 100% white. However that spending 10rs to convert 49rs of white is actually a true scenario! Very recently, I have seen a friend of mine doing this in delhi NCR!
@@viveka_r so how this works is for example you have rs 100 in your bank account and you want to get that converted to cash… If you withdraw directly from bank, you can come under radar as if why have you withdrawn such an amount and official may ask you to show the utility. Cut to, what people do they reach out to folks who can arrange bills for them…they will show someone has rendered you some service and you have paid them back (account to account) then they will withdraw in piecemeal and share you the cash. In return they charge 2-3% of total transfer value! 😊
I honestly did not understand the Rs 10/- spent part can’t you just withdraw your money from the bank ? I’m asking this question and risking looking stupid but I really didn’t understand
@@fahrenheit9746 you can! But there is a scrutiny in every bank if you withdraw money more than some threshold limit. (Even from your own bank account) Chances are there bank/authorities may come back asking you the usage of those funds. Now that the builder wants this in black, he will not give you any acknowledgement /receipt hence you will not be able to prove the funds usage.
Take a loan out on your company use it to buy a property on the companies name, show it as an expense in the book of company, payment interest on the loan using the profit from the company, which again works as an expense, live in the house. Later on gift your self the house as an increment or dividend from the company to your account. No need to pay all those taxes.
Itna ghoma phira ke kya fyda. Directly apne company se hi housing loan le le na, bas ek BoD resolution kaafi hai. Kyu deemed-dividend/ CG pe tax bharna chata hai, bhai.
& then look at the quality of public Services received in our usual cities- Broken roads & pathways, garbage & dust all around...pathetic in every manner. Govt needs to mull upon public convenience rather than just booking high level of profits in the form of tax collections.
Hmmmm.. and yet NO ONE talks about Indore and Surat and how the civic administration and the people came together to make it one of the cleanest cities in the country 7th year in a row. Vijaywada, Mysore, Visakhapatnam... There when people find trash on the street they pick it up and put it into the nearest bin. How many times have you done it? Ask not what your country can do for you, ask what you can do for the country!
@@TheDihedralcivic sense made those cities the most respectful thing that could've happened. The people always crying for the government won't do shit to change themselves.
This is not only about real estate but tax regime in india Govt looting hard working people and giving worst services in the form of roads ,health and law&order
Thats exactly why you never get a company in profit, keep it in debts, buy everything from your company expense, buy land on company name, use a opc subsidiary and you are set. Work this KEEP EVERYTHING IN DEBT.
Take loan against your block of shares (doesn't have to be listed, though you need more due diligence), and pay the EMIs from your revenue stream. That's easier in this case.
I know India's taxation system needs a change in a better way. But if this is the reality 25% corporate tax plus dividend distribution tax of 28%, that's 53% on one's profit, its insanely humungous. I don't think what he is saying is entirely true.
This is true, my parents are retired Government officers (honest) all their money was White, they actually had to convert their white to black so everyone wanted at least 40% in cash.
People ask for cash because of so much taxation. If you will buy a flat or any commercial property from a builder you will have to pay gst , stampduty on registration of the unit and when you will sell it income tax will hit you that's why real estate in India have so much black money
He is true . recently I have bought a piece of land of 4.2lakh /dec..of 6dec total..and from that the owner on RSD (registered sale deed) mentioned only 9lakhs..and before Sale deed he took money of 15lakhs in cash . And this the dark reality 😢
You can take out a loan on your promoter stock option as a collateral for the piece of land you buy.Or you can float a trust fund and through that own the land .
No promoter cashes out to buy real estate, they either take debit against the security of their unliquidated shares or just buy it on account of the business to write it off. Thus paying no taxes either way
However, no rich guy buys a house in his own name. They either buy it through a trust or a company. The money that they need doesn't come from comapny's accounts. It comes from either their salaries or Dividend payout. Corporate Tax is a weird form of taxation.
First You Pay Divdend and DDT, Then You Pay Corporate Tax. He is Wrong But Yes, corporate Tax should not be more than 20 % and Income Tax for Middle Class should not be more than 15 %
True, real estate asks for cash
If u go to a bad realtor.
Good realestate companies take only white.
Else you have to pay tax for that white as well.. percentage depends on state you are in
@@pragyasingh3291 this guy Kamath want every one to trade so that his Zerodha gets profit…93% traders lose life in trading. Realestate is better than trading.
You don't need to spend money to convert white money into black.
Her smile was like - arry yeh toh dhooti khol rha hai, chup hoja bhai😅
Bas Kar yaar😂😂😂😂
Bas daat chiyaar k hasne aata hai usko . Wo bas sign krna jaanti hai 😅
@@hakkhani 😃
@@harshalsingh1598 😄
😂😂😂
Then you buy land and pay stamp duty
+ TDS
@@bachelorlko tds is not applicable
And that is just 3%. Now, if you have the means to by a 1 cr property, surely you can afford 3L as stampduty.. right?
It's not about stamp duty, it's all about income tax funda on property
@@palboy3565 TDS on transaction, when you buy the property.
Very true nikhil…nobody buys land in white money..if white money comes into picture land prices will drop drastically and will become affordable for people like us…
Nope people take cash because government ask high tax on property selling.
true and it’s good that government has dropped indexation benefits. circle rates won’t inflate that much
Not everytime
@@parthtool
a) Indexation benefits are restored.
b) Without indexation, prices will zoom.
c) Dont talk about stuff you dont understand.
@@trira1171Indexation benefit have been restored upto a certain date. Beyond that date there is no indexation benefit. This is sad and a decision by government.
Not an extreme case, this is the case with each and every purchase.
That person saying it's an extreme case is living far away from practicality and reality
He is saying about everyone
This is not for everyone because he is talking about corporate tax which is paid only by companies on their net profits
The real money the cash is with real-estate guys , all black and no tax
This was one of the best podcasts Nikhil Kamath
Key Takeaways:
1. How 3 Bangalore Real Estate Brands Prestige, Brigade and Embassy started off
2. Starting small in any business will keep you rooted
3. Most businesses die in the 4th generation, so don't worry too much on legacy let the future generation decide what they want to do about.
4. In real estate you might have to bow your head in front of people who are irrelevant
5. EGO in business let's you lose in the game of entrepreneurship
6. Hang out with your competitors because there's enough for each one of us
7. Passion is over rated, being successful and making money from something you don't love is better than doing something you love and not being successful (in entrepreneurship)
8. Urbanisation in India is yet to happen, we are just tip of the iceberg
9. Fractional Ownership - How it works
10. Land Aggregation - Holding on to Land vs Developing it
11. Every City in India is like a country, has different set of approvals.
& more to pen down, thanks to all four of you for making this happen.
Thanks for the highlights man, appreciate the effort
he is right..in real estate deals their is big black money component...sad part is govt. knows it yet does nothing
That's because it's one of the fragile business to venture into. Any economic downfall of country starts with negative outlook of either banks or real estate business. So government plays safely by looking blindly at it and it's also one of the profitable business too which funds the political parties.
People in the government also park their money in real estate so why will they curb it.
"Politicians"
@@ShriNidhi-zu2im "Bureaucrats"
Nikhil is the mission to benefit every possible way 😂.
these podcasts are like nikhil call them and teach them how to do business ❤
Teach them business? 😂
Would you not do the same if you had his resources and network?
Yes, he calls guests and unko hi gya ch**** hai. Narc
person who can build a high profitable company like zerodha from scratch can do alot he will eventually teach them
Little bit of money 😂
It's actually 10%of what it says on the internet, as it's taxed and unusable if it's not converted to debt , unlike real-estate guys who have cash
Just do your 10% of 2 billion dollars@@zackcarl7861
@@zackcarl7861 Nikhil takes out a salary of 100+ crores per year
@@jayceekarpsaste nashe😂. Chutiya thodi hai wo ki 100crore salary leke 30 crore tax dega. No business owner takes this much amount as salary. All take stocks and such
@@zackcarl7861his 10% is also not little😂
Nikhil knowingly called them to the podcast so that he could openly speak the reality of real estate and there is no controversy😂😂
Shocking this is so obvious and still government is not doing anything about it,
I wanted to buy my first house, all inc my budget was 65-70l, had explored around 15-20 flats, every single builder asked around 20l+ cash.
Go for Godrej they don’t ask for cash
You pay Stamp Duty, Registration charges. Then when you sell the property, you have to give Capital Gain Tax. ☠️
Stamp duty: Swagat nai karoge hamara 🗿
The tax system in india is just F up that's why people are leaving country and moving to dubai Singapore and their economy is flourishing
Not only in India, it's the same everywhere...
Exuberant taxation at each level of income generation obviously gives way to black money system.
Yes , there is no need to make the corrupt govt rich 😂😂
Exorbitant*
Generally this happens with builders floor. The corporate builders usually agrees on 100% white.
However that spending 10rs to convert 49rs of white is actually a true scenario! Very recently, I have seen a friend of mine doing this in delhi NCR!
Can u explain me what he means by spending 10rs he is converting white money to black.
Like how do u convert white money to black.
@@viveka_r so how this works is for example you have rs 100 in your bank account and you want to get that converted to cash…
If you withdraw directly from bank, you can come under radar as if why have you withdrawn such an amount and official may ask you to show the utility.
Cut to, what people do they reach out to folks who can arrange bills for them…they will show someone has rendered you some service and you have paid them back (account to account) then they will withdraw in piecemeal and share you the cash. In return they charge 2-3% of total transfer value! 😊
I honestly did not understand the Rs 10/- spent part can’t you just withdraw your money from the bank ?
I’m asking this question and risking looking stupid but I really didn’t understand
@@fahrenheit9746 you can!
But there is a scrutiny in every bank if you withdraw money more than some threshold limit. (Even from your own bank account)
Chances are there bank/authorities may come back asking you the usage of those funds.
Now that the builder wants this in black, he will not give you any acknowledgement /receipt hence you will not be able to prove the funds usage.
@@fahrenheit9746 Which bank would let you withdraw tens of lakhs in cash?
Take a loan out on your company use it to buy a property on the companies name, show it as an expense in the book of company, payment interest on the loan using the profit from the company, which again works as an expense, live in the house. Later on gift your self the house as an increment or dividend from the company to your account. No need to pay all those taxes.
Read deemed dividend section
What an idea, please keep it hidden 😂
We don't live in the US or Korea. You can't superimpose idioms onto us
Itna ghoma phira ke kya fyda. Directly apne company se hi housing loan le le na, bas ek BoD resolution kaafi hai. Kyu deemed-dividend/ CG pe tax bharna chata hai, bhai.
@@kasim7929 like a guest house for the chairman of the company
I like his no holds barred approach.
Great joy to listen to you sir!
I’ve just gone thru it twice 😂😂
Fortunately first experience gave me a little idea second was for business purposes but was prepared 😂😂
Quiet bold to say it out here. Nice to see it.
Nikhil's understanding is insane
& then look at the quality of public Services received in our usual cities- Broken roads & pathways, garbage & dust all around...pathetic in every manner.
Govt needs to mull upon public convenience rather than just booking high level of profits in the form of tax collections.
Elect good state government and good person in local election as well
@@willgetonepieceon this, BJP, Congress, AAP and (surely) every regional party is one the same bus. Mayoral politics nahi chalega.
Hmmmm.. and yet NO ONE talks about Indore and Surat and how the civic administration and the people came together to make it one of the cleanest cities in the country 7th year in a row.
Vijaywada, Mysore, Visakhapatnam...
There when people find trash on the street they pick it up and put it into the nearest bin. How many times have you done it?
Ask not what your country can do for you, ask what you can do for the country!
@@TheDihedralcivic sense made those cities the most respectful thing that could've happened. The people always crying for the government won't do shit to change themselves.
Dividend distribution tax in the hand of corporate, it is abolished in the hands of company.
You still have to pay further 18% gst on land payment, 28% on cement used and another 18% on steel used apart from taxes on other materials or labour.
This is not only about real estate but tax regime in india Govt looting hard working people and giving worst services in the form of roads ,health and law&order
I need your little bit of virtual money😂😂
Real scenario well laid out. Thnx Nikhil.
That black and white money is 100 percent true.. Everyone knows but govt doesnt do anything for this issue.
Thats exactly why you never get a company in profit, keep it in debts, buy everything from your company expense, buy land on company name, use a opc subsidiary and you are set. Work this
KEEP EVERYTHING IN DEBT.
Finance ministers ❌
Wasooli gang ✅
what about the responsible , patriotic citizens who use this system?
@@User-mncbjlfjrebxkl do you mean adani 🤔
Take loan against your block of shares (doesn't have to be listed, though you need more due diligence), and pay the EMIs from your revenue stream. That's easier in this case.
Yes, and also can be deducted from tax...
I know India's taxation system needs a change in a better way.
But if this is the reality 25% corporate tax plus dividend distribution tax of 28%, that's 53% on one's profit, its insanely humungous.
I don't think what he is saying is entirely true.
Bhai that was the best part of the whole conversation 😅
Real estate is the real hub of black money
That's not actually an extreme case rather a ground reality when u want to buy a plot n construct a house ...
100% because around 50% paid in cash as black money and rest through cheque which value of property on paper
This is true, my parents are retired Government officers (honest) all their money was White, they actually had to convert their white to black so everyone wanted at least 40% in cash.
Bohot tagda mara hai bhai ne Punch😂
Man is very humble once he said little bit of money 😅😂
It's not an extreme case. This is a ground reality
Stamp duty and registration part is still left
Real-estate is for cash component but not for patriots. Truth alone triumphs🙏
All truth he said...tks Nikhil
Joke of century corporates pay tax on actual profit 😅
Then, how is it?
@@shobhitverma7048 nobody shows their profit as their actual profit. There are ways to reduce it.
@@shobhitverma7048 ask ur CA aspirant friend
Bro has no idea what corporate tax is
wow... kaha se aate heh log....
Great job Nikhil
Very true brother thats the real estate story of India
People ask for cash because of so much taxation. If you will buy a flat or any commercial property from a builder you will have to pay gst , stampduty on registration of the unit and when you will sell it income tax will hit you that's why real estate in India have so much black money
Entire ecosystem is sucking hard-earned... everybody knows it well and there's seems to be no solution. 😢
Perfect example
Her smile says it all, " AREY ITNA SACH"
Sir you have to pay 7% stamp duty also on that land and 18-28% on construction material
Totally right sir we have to many tax on tax
For your kind information, there is No dividend distribution Tax now.
That's why post demonetisation real estate prices came down for 1-2 year's
He is true . recently I have bought a piece of land of 4.2lakh /dec..of 6dec total..and from that the owner on RSD (registered sale deed) mentioned only 9lakhs..and before Sale deed he took money of 15lakhs in cash .
And this the dark reality 😢
He is absolutely correct
Same for the physical gold jewelry situation also😅
DDT was removed few years back
He is always on point
Those big guys of prestige etc still convincing people to buy flats rather than earning.
BTW Dividend distribution tax was abolished in 2019
Pay legal opinion fees, registration fees, stamp duty, Khata transfer, electricity name shift and on top give bribe to get all these done.
Shift your ownership of the company to a trust, zero tax.
Not an extreme case
Except the real estate guys Everyone who is buying for self use is feeling the pinch
Is this case with everything? Even for middle class?
Bade bade investors ka bada bada problem 😂. Income tax from salary 30%. CT is 25%
Vaise dividend distribution tax has been scrapped instead it is taxable in the hands of shareholders under Income from Other Sources
dont take dividend just pledge your share and get home loan
Bcz from now there is no indexation on capital assets and also stamp duty rates are also high so sometimes it becomes very costly to buy a house.
only missing assumption is dividend tax is like tds and you can get refund
You will find this changing, recently there are people who are willing to sell in white even the farmers, yes convincing them can be hard
Dividend distribution tax is no more in indiam taxation.
Not an extreme case but reality of today's generation.
Did not understand the spend 10 rupees to conver white to black part. Simply withdraw cash isn't that how it works?
"this is an extreme case"
No dear. That happens much more often than you think
true . Real estate it is impossible to work in white. Or you will lesser options and sometimes inferior properties.
Her smile said it all!
But you can show other expenses on company books think about salaried person
You can take out a loan on your promoter stock option as a collateral for the piece of land you buy.Or you can float a trust fund and through that own the land .
Came into a little bit of money has me awestruck 😂
No promoter cashes out to buy real estate, they either take debit against the security of their unliquidated shares or just buy it on account of the business to write it off. Thus paying no taxes either way
Bro please explain the reality of trading ., esp F&O with 30% fees and the illusion of profit 😂
Nikhil knows everything. What an intelligent guy!
U got balls man to ask questions like that ❤🎉
Dont publicly nirmala ji will send ED...😂 Other day what happened with hotel owner, he sprak about the GST and endup apologizing her later.😢😮😅
Bro DDT has been abolished now, now it's taxable in the hands of shareholders 😊
It's not like that, people buy flats in white money.
So you will never choose this option at all. You will take a loan and show the expense as business take GST credits and makes most out of it.
It's same with people working in india
However, no rich guy buys a house in his own name. They either buy it through a trust or a company. The money that they need doesn't come from comapny's accounts. It comes from either their salaries or Dividend payout.
Corporate Tax is a weird form of taxation.
Nikhil airing the dirty laundry of Indian real estate bubble 💯 🤣
Bhai if you do 100 white business then it is right but it is not like that all three are not telling you on camera
This guy is literally taking their case 😅 her expression is the proof
Real estate is hiding black money in plain site
nikhil asking all the right questions here
First You Pay Divdend and DDT, Then You Pay Corporate Tax. He is Wrong
But Yes, corporate Tax should not be more than 20 % and Income Tax for Middle Class should not be more than 15 %
These days many take white alrhough there may be folks who may offer additional discount on cash component
That's not just about real estate, he showed us the Indian system to loot poor people like us😢
Most small level players ,they do. Elite and reputed dont
Yup I am looking for a plot and every owner I met is asking for cash
Taxes like Europe, Services like Somalia