10 ways to Convert Black Money To White
Converting black
money to white is very common today. People use all illegal method to convert
black money to white. This article is written to expose ways which people use
to convert black money to white. I no way encourage any taxpayers or
anyone to use any of the below methods.
10 Method to Convert Black
Money to White
Bogus Loan Entry
Popular method
people use to convert black money to white is by showing bogus loan entry.
Modus operandi under this case will be people give black money to friend or
relative and take a cheque from them. This is kind of bogus loan entry to
convert black money to white.
In some cases
people give repayment of this loan by giving back cheque. People doing this
must understand that Income tax department is watching every transaction and
tax payer have to prove genuineness of every transaction.
Formulation of Trust & doing Charity
Another popular
way used by people to convert black money to white is by formulating trust for
social cause. They make executive bodies of own people in trust sometimes
illiterate people like driver cook etc. They donate black money to this trust
as charity to convert black money.
On paper it is
charity but off the shelf it is conversion of black money to white.
Showing Income as Agriculture Income
Another popular
way of converting black money in to white is by showing income as agriculture
income. In order to show income as agriculture income you must possess land and
it must be used for agriculture purpose like plantation, garden nursery etc.
However there are
various conditions you need to satisfy in order to claim agriculture income.
Showing Cash Income from Profession
Another popular way to convert black money to white is by
showing income in cash. Income from tuition, professional fees or commission is
shown as cash by many tax payers it is nothing but converting black money in
white.
Sale of personal belonging like Jewelry
Go to known
jeweler and give him all black money you want to convert. He will give you
cheque for the same amount. He will also give you purchase bill showing you
sold your personal Jewelry to him. By this way your Black money is converted to
white and you need not to pay capital gain tax even.
Converting Black money by Investment
Another method
people use to convert black money to white is by making investment in cash.
People purchase
insurance policy and pay premium in cash. For example if insurance premium is
50000 Rs/- payable quarterly, than people pay first premium via cheque and rest
all premium in cash. This is most simple and popular way to convert black money
in white.
Getting Black money as gift
Another popular
way to convert black money to white is by getting gift from relative. Modus
operandi is simple you have black money and your relative has the same amount
of white money. Your relative issues cheque to you as gift and you will give
your black money to him/her.
Depositing Black Money on name of Family members
Another popular
method for converting black money to white is to open bank account on each and
every individual family member. Deposit black money on the name of every family
member to convert it in white.
By Real Estate
Real estate is
sector where majority of black money is parked. People use real estate deals to
convert black money to white. It is observed that people do fake real estate
deal exchange money and cancel these deals due to non-payment of money.
By Declaring Black Money
Best method for
converting black money to white as per me is by declaring this money to IT
authorities and paying tax on this money to convert it in white.
Disclaimer –
I don’t recommend
readers to follow any of these methods for black money conversion. This article
is just for exposing loop holes of our system. So, that RBI and the government
can take appropriate action by formulating strict rules to remove black money
from India. I am against black money and black money generation ideas.
If I have missed
any other methods which people use to convert their black money into white
money I request you to share it in comment section.
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