Saturday, October 01, 2016

How To Convert Black Money to White Money

How To Convert Black Money to White Money

How To Convert Black Money to White Money : After Modi's decision to ban Rs 500 and Rs 1000 rupee in order to expose black money hidden in India, people are searching the method by which they can convert their black money into white money with out any tax deduction. So here i am going to give you some legal and illegal idea by which people can convert their black money into white money easily. 

Declaring income as Agriculture income:
If you have agricultural land, than make a tax return file, and declare all your income as Agricultural income, now your money became white money, because as per the Income Tax rule,  their is no tax deduction for the money earned by Agriculture. But you have to take the help of a good tax consultant for doing this.

Depositing Money in Family member's account:
If you have huge amount of black money, then you can open a new account in the name of your each family member, or relative, then deposit  Rs 2.5 lacs in each account (Deposit Rs 40,000 in each transaction). And then declare income tax return file in  their name. Then ask them to issue cheque in your name. Now the money you received is white money.

Getting Black money as gift:
It is the easiest method of black money conversion. If your relative has white money (If he has given tax), then you can ask them to issue a cheque in your name, Then pay the same amount in cash to them. Now the money your received is white.

Making Charity & Trust:
It is the best method by which you can convert a huge income (Above 1 crore) black money into white money. You have to make a charity organization comprising of poor people, Then register it as a  Charity & Trust. Now donate your money to that charity or trust, now this money became white money.

By purchasing land:
You can easily convert your black money into white by purchasing land. You can purchase a large size land, and make your deal in cash payment. In the court paper, mention the price of the land as per govt price (Low price). As you know the govt price of land is lower then the market price, so all your black money became white.

By Investment in insurance:
You can invest your black money by purchasing insurance policy and paying the premium in cash.
 For example if insurance premium is Rs 50000 - payable quarterly, than people pay first premium via cheque and rest all premium in cash. 

Investing  in Real Estate
You can make a  real estate deals to convert black money to white. Do a fake real estate deal exchange money and cancel these deals due to non-payment of money. Your money became white.

Purchase Gold:
You can purchase gold biscuit of below Rs 50000/- value. as you know, below Rs 50000/- transaction, they don't ask for PAN card, so your money invested in gold became secret. Govt cant know it.

Declaring Income as Profession income:
In this method you can convert Rs 2.5 lac money as white in a year. If you have black money, then declare your income tax return by showing it as money earned from tuition, professional fees or commission. Now your money is white.

Paying Income Tax Return: 

It is the legal method of converting your black money to white. You can declare your original income by income tax return filling each year. As per rule, Rs 2.5 lac is tax free, above it you have to pay tax as per the income tax slab. By this method you can convert any amount into white.

Disclaimer : All the method except the last method is illegal, I personally suggest you to convert your black moneyin to white money by declaring tax return file. I never ask any one to follow the illegal method. Here i expose the hole in govt policy.