Undeniably people invest a major part of the black money in the fixed assets. To mention a few, say, residential and commercial properties. Wondering how? Well, the answer is simple. Most importantly, the lack of precision in property transactions encourages black money investment in real estate. To begin with, weak laws and incorrect land titles lead to disputes in the property. Besides, there are many black money players in the market. They use the real estate sector to put in their unlawful money. Subsequently, they make further profits from the same. However, things in India have changed recently. This is since Aadhar Card has become a necessary identity proof in India. Most importantly, the government has made Aadhar Card for Property Registration In India compulsory.
This blog in particular, explains if Aadhar card is mandatory for property registration in India and why.
Aadhar Card: Based Verification for Property Registration
To put an end to the chain of fraud, the Government has of late taken various steps. To mention a few, RERA (Real Estate Regulations Act), GST (Goods and Services Tax), demonetization etc. RERA and GST have directly influenced in making real estate sector more transparent. Besides, demonetization has shaken the base of black money to a great extent. Furthermore, these schemes have limited the use of black money in real estate. Besides, it lowered down the cases of age-old property disputes. To put in simple words, there is an excellent initiative by the government to increase transparency and handle ‘benami property’ transactions. This is the Aadhar-based confirmation for property registration.
Indeed, linking Aadhar with property was a vital decision. The government however, considered linking all Indian properties with Aadhar. This definitely, helped to create a central database of ownership for each and every property.
Aadhar Card: Is It Compulsory For Property Registration
Undeniably Aadhar Card has become an essential identity proof in India in the past few years. Aadhar Card has become the mandatory identity proof in India for getting a PAN card, gas connection, opening a bank account and tax return filing. At present, the government has made Aadhar-enabled authentication compulsory for property registration in India. In 2014 the Finance Minister Mr. Arun Jaitley made Aadhar link in real estate compulsory.
Why Aadhar-Enabled Authentication For Property Registration?
In order to ensure confirmation in the real estate sector, the government has taken the initiative to make property registration Aadhar-enabled. There are two major reasons behind this Registration Act; to control black money and stop benami property transaction.
How Aadhar Card Ensure Authentication in the Real Estate Sector?
1. To cut back black money
To specify, black money is majorly invested in the real estate sector. This is especially in the premium property. Furthermore, to put black money out of sight people invest in the real estate sector. In other words, this is an attempt to make it white. Subsequently, Aadhar confirmation is a must. This would definitely add to transparency in transactions. Most importantly, dishonest buyers would keep away from putting in their black money in real estate. In particular, the government can verify any information regarding a buyer with ease. This can be done both before or after registration for validation.
Most importantly, these days tax returns and other things are linked to Aadhar card. Subsequently, the buyers now are more conscious and consider twice before putting in any secret money in buying property. In brief, this linking of Aadhar card with property registration was important. This is to ensure that buyers don’t get the chance to invest their black money in the real estate market. As a matter of fact, even the owners (pre-existing) of property in India need to get their registration linked and suitably verified with their Aadhar number.
2. To put an end to ‘Benami’ property
Even post the Benami Transactions Amendment Act, 2016, people are still continuing to invest their money. Subsequently, to onslaught such deals, the government has made it essential for buyers to validate their registration with the Aadhar card. Besides, The Income Tax Department of the country is taking the initiative to match the property deal made by people with the tax profiles.
Wrapping up
Many states in India have by now declared Aadhar- authentication for property registration. In short, approaching buyers and sellers would need a unique Aadhar number to complete the transaction. Whether, it is buying or selling property in India, in either case, it is compulsory. Besides, documents of property owners would be cross-verified with Aadhar number. Most importantly, the government can retrieve any information. This would definitely boost transparency in the real estate segment. Of course, this is a tactical move to control the problem of black money in property deals. To sum up, Aadhaar Number is a must for real estate transactions in India. Have your Aadhar card in place!
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