Prime Minister Narendra Modi’s demonetization drive has created a stir in the country. This drive is not new to the Indians; previously it was implemented by Moraji Desai. What is important about Modi’s measure is that it has gained a lot of limelight out of an otherwise insignificant move. This is just an initial step incorporated to reduce the amount of black money generated in our country. People are still dipped in doubt, whether this step will do any good to the country or not. Only time will be able to clear all our doubts.
Nowadays, “How to convert black money to white” is one of the frequently searched topic in Google. Demonetization has hit hard and made the masses frantically look for ways to convert their black money into white. Here are the 10 ways to Convert Black Money to White.
- Firstly, reports show that people have donated their black money to various temples. Temple managements and the owner of that black money thought it to be an easy escape. Management would show this money as some anonymous donations, exchange it for new currency notes and would keep a certain commission for this service. In this way most of it would be returned to the owner.
- It was announced that people who are going to deposit large sums of cash that doesn’t match their income, will have to pay tax up to 200%. However, there is also a way to trick the authorities, one can put in a large amount of cash in bank and identify it as income from ‘other sources’ in the current assessment year, and pay just 33% income tax on it.
- Another interesting way to convert black money in to white is by tagging income as agriculture income. But in this case one must possess land and it must be used for agriculture purposes. However certain conditions are mandatory to claim agriculture income.
- Any amount of cash received as gifts from relatives is exempt from Income Tax. All you have to do is just say that the cash was received in your son’s or daughter’s birthday as gifts from relatives. The money earned through corrupt practices can be converted into white after paying taxes.
- Often people make investment in cash. Many purchase insurance policy and pay premium in cash. For example if insurance premium is Rs. 50000 payable quarterly, then people can first pay premium via cheque and the rest in cash. This is most simple way to change black money in white.
- If you can show income in cash like tuition income or any other professional fees then you can escape. Just pay the tax at a regular rate and your money is white now.
- As soon as Demonetization hit the country, many black money owners took the chance and within four hours they had and bought gold till midnight. Jewellers happily sold gold at a high premium. The government sought top jewellers to provide details of gold transactions after the demonetization.
- Railways are going to accept old notes on booking till 14th Now, people are busy booking expensive train tickets which they will later cancel and get refunds in new notes, with a small cancellation fee. Thus the rate of expensive first AC tickets booked per day has increased by many folds.
- Transferring money through poor people whose bank transactions will not create suspicion, is leading to many creative enterprises. Many have decided to give interest free loans to the poor which apparently look like a good impact of demonetization. But NO! It is just playing shrwed to convert black money into white and defeat the purpose.
- Political parties can collect donations of Rs 20,000 or less without revealing who gave the money. It will become easier for a political party to say that it collected the cash in old currency donations before demonetization and demand that it to be changed into new currency by the end of December.