Best ways to convert black money to white
Best ways to convert black money to white: Now days converting black money to white money is very common in today’s world, Some people use to hire the CA for doing some legal action on converting black money to white.
All legal and illegal methods to convert black money to white. This blog is written to expose all the legal and illegal ways by which people use to convert black money to white. This blog doesn’t encourage any taxpayer or anyone to use any of the methods.
Best ways to convert black money to white
1. Bogus loan Entry
Bogus loan entry is one of the most popular methods which is used by people to convert black money to white. Modus operated under this case that people use to give black money to friends or relatives and they pay you back in form of a Cheque or bank deposit. This is a bogus loan entry to convert black money to white.
There are some exception cases people give a repayment of this loan by giving back cheques. People doing this must understand that the income tax department is keeping eye on each and every transaction and every tax pater should have to prove the genuineness of every transaction
2. Formulation of trust and doing charity work
Charity work is another popular method of converting black money to white money. Money gets white by formulating the trust buy the social agenda. They donate black money to the social trust as charity work to convert black money.
On paperwork, it’s charity work but on the dark side it is a conversion of black money to white
3. Agriculture income
Showing agriculture as income is another popular way of converting black money to white money by showing income as an agricultural income. In order to show income as agriculture earning you must acquire land and it must be used for agricultural purposes like growing fruits, doing plantations, gardening, etc.
Whereas there are many various conditions you need to satisfy in order to claim agriculture income.
4. Profession showing cash as an income
Cash income in the profession is another popular way to convert black money to white money by showing the income in cash form. For example Showing income in form of tuition fees coaching fees, professional fees, or commission in a form of cash. Many people use to save tax in form of this method.
5. Sale of Asset
The sale of assets is another good way of converting black money to white money. Go to any good jeweler shop and provide him all the money that you want to convert. He will provide you with the cheque for the same amount which you have given. He will also provide you with the purchase bill by showing that you have sold all your jewelry to him . In this way, people convert black money to white, and hence your tax is saved not to pay any capital gain tax even.
6. Conversion of investment by Black money
Investment conversion is another method of converting black money to white money by making investments in cash.
People use to buy premium insurance policies and pay in cash. Example: people use to buy health insurance for more than 1lakh then they use to pay some money in cheque form then rest of the money in the cash liquid form. This is the easiest and most popular way of converting black money to white
7. Getting Expensive gifts with black money
This is another most popular way to convert black money to white by getting expensive give from friends or relatives with those black money. Simple is that when you have black money and your relative or friends have the same amount in the form of white money just give them a black money cheque and gift you an expensive gift.
8. Money deposit in family member’s bank account
Depositing black money in a name of a family member is another popular method for converting black money to white money just people use to open a new bank account in the name of another family member and deposit black money into their bank account just to convert the black money to white money
9. Buying a Real Estate
Real estate is one of the biggest wormholes of this sector where the majority of the black money is stored in the form of real estate. People use to deal with real estate brokers just to invest their black money and get the return for white money. Some people use to do fake real estate deals just to exchange their money.
10. Delaring black money
Declaring black money is the best method for converting black money to white by declaring this money to IT authorities and paying tax on this money to convert it into white money.
I don’t recommend following all these methods for saving black money.This blog is just for exposing the loopholes in our systems. So please don’t practice these methods. I would recommend you pay your tax.
Let’s fight against black money and corruption in our nation.
Jai hind Jai Bharat
Also, Read – 8 Common Tax Filing Mistakes To Avoid
FAQ ( Frequently Ask Questions)
Keeping black money is legal?
No, keeping black money is not legal in India or any other country. But there are certain methods that you can save your black money. keeping black money lets you go behind bars. So keep paying your tax and don’t keep black money in your pocket.