How to Convert Black Money into White Money : The most searched Keyword on Google (India) -Hello readers, you will be shocked to hear that after the announcement by our Prime Minister Mr Narender Modi about demonetizing Rs. 500 and Rs. 1000 currency notes in India, most of the people are searching the materials on the topic “How to convert black money into white money” in Google India. Peoples from every state searching for this and in the sequence, Gujarat is on the top place. After Gujarat, Maharashtra and Haryana are in second and third positions that searched about “How to convert black money into white money”. It was surprising news for all the Indians that from 9th of November 2016, Rs. 500 and Rs. 1000 currency notes banned in the India. Mr Narender Modi took this decision to stop corruption, terrorism, black money etc. So, through this article, we are going to tell you about the corruption and black money and about the techniques using by the peoples to convert black money into white money. We are completely disagreeing with these ideas and techniques that are following by the people to covert black money into white. We are just highlighting the facts which are happening in our surrounding. So, before going to know about the black money conversion- ideas and tricks using by the peoples, let us know about the Black money and how it is generated.
How does the black money get generated?
Corruption/ Sale of property/ Sale of goods/services without invoice/ Accounting for fictitious expenses: It generates lots of black money. If anyone can take cash/money for anything and does not shows to the government (in terms of TAX).
How people convert Black money into White money
It is the difficult part of the black money when it comes to converting process. Black money always comes in the form of cash, not in check/DD. So, in converting process without paying taxes, people try to spend cash in other places as they cannot deposit black money in the bank. They can hide cash in different places such as under the roof, under the hidden basement, in the bank locker where or suitcase etc. They spend their black money in the cash everywhere either they are purchasing white goods, property, household items, school fee, shopping and in many other things.
Showing fictitious sales: The black money is also converted with the help of another person. Like, if you want to convert your black money into white then, you can convert it into fictitious sales of the company.
Sale of Gold and Diamonds: People also convert their black money into white by purchasing gold and diamonds in cash without paying any income tax.
Increase the sale price of an asset: People buy a property in 1 crore from a dealer who wanted him to pay 2 crores in the cheque and in response he return 1 crore additional stamp/ registration charges in cash to the buyer. So, he made 1 Crore as black money.
Hawala Route: People convert black money by Hawala also.
Agricultural Income: The person who knows that agricultural Income is free from Income Tax they can use their black money to convert it into white. This means the money earned from the sale of paddy, pepper or wheat is exempt from tax. So, get fictitious receipt from different traders in agricultural commodities to convert black money into white money.
Gifts from relatives and friends on occasions: People know that gift is exempt from Income Tax. So, if they have black money from any source then they show it as relatives (gift) that are exempt from Income Tax. If they get gifts from friends or non-relatives then it may be dangerous but they can show the gift and pay the taxes and can make the black money into white.
Investing in property: People uses their black money in property. For example: suppose, someone selling property in 2 crores, then they make documents for 1 crore and accept 1 crore as a black money.
Cash Spending: we can spend our cash everywhere like on weddings and functions and in these events we can use lots of black money that use as white money. Apart from this, the person buying goods or services where no need for identification such as white goods, interiors decorating, building, houses etc done using black money earned in cash.
School Fee and donations: People use black money in the form of donations to the school, colleges for the seat.
Elections: We all know that politicians spend lots of money in the election to win their seat. So, they use black money to get votes from people.
Suggestions to the Readers
Now, this is a really disgusting situation in the country that we are facing too many problems only because of black money. Only because of some people and their dirty thinking everyone is suffering from several problems. The government of India and Income Tax Department keeps eyes on you, your bank account and your financial activities. So, be clean, be safe, pay your tax honestly, avoid black money and make our nation strong.
DISCLAIMER: We have advised you, not to follow above listed steps as we have just shared some false practices making by the peoples to convert black money into white money. This article is not to encourage the taxpayer to use above methods but to aware them of unwanted/unhygienic economical activities. If you are trying any of these then kindly stop your leg as Government of India and Income Tax Department keeps eyes on you, your bank account and your financial activities.