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 to use any of the below methods.
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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.
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. 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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Ways to Convert Black Money to White
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