The people involved in converting black money to white money are constantly digging in to find different means and inventing new methods of channelizing black money in the legal system. The article talks of channels of how to turn black money to white.
5 Ways of How to Change Black Money to White Money in India
I am going to tell you different channels of “how to turn black money to white money” opted out by the people for bringing in their illegal money in the system as a white money.
Table of Contents
1. How to convert black money into white money in india
People who are engaged in converting black money into white money consider themselves smart enough to make a fool out of the system established. They are devoid of the knowledge that banks are way smarter than what they think themselves to be. I will tell you how to convert black money into white through bank.
The bearer of black money give the specified sum of black money to a relative or friend that has white money and in turn takes the check of that amount. The black money holder show this transaction as loan taken from that person for a specified amount for a certain time period in their books. Till the time the loan is depicted as loan outstanding, black money holder is able to convert his black money into white money.
I will tell you another way of how to convert black money into white money through bank. What you can do is to show your black money under the name of income received from addition source of earning whose payment is made in cash.
They could show income received from renting out a space, income received from giving yoga training, or writing for some local news, etc. After mentioning it, they pay the tax on their income at the normal rates and escape from the trap of engaging in suspicious or fraudulent activities.
2. How to convert black money into white through stock market.
It is one of the most preferred way to turn black money into white money. I will explain how to convert black money to white in India through stock exchange market. What happens is the investor or the black money holder approaches the stock broker and the broker facilitates in opening up the account in the name of person or company that falls below the taxable income category.
The account is completely invested and run by the black money holder but in the name of different person and when the investor wanted to withdraw the money, he or she ask the broker to facilitate the entire transaction. For doing this job, the broker gets the commission on it.
Another way of how to convert black money into white through stock market. This is little time taking process but converts huge some of black money into white. They are two type of investors. One with unaccounted money and another with accounted money or white money.
Here the intermediary or the broker play a crucial role is making these transactions possible. As soon the company is done with the listing, the investors who wanted to turn their black money into white money makes the purchase of shares, they make purchase from their accounted money or white money and after the black money holders are done with buying the shares, the investors in possession of white money begins to buy the share in large amount and as the result the stock prices shoot up leading to a situation of making millions from hundreds.
The white money holders though in practice are buying in large amount from their white money while under the table they are actually receiving money for making such purchases to shoot up the stock prices. To give you perspective, if the white money holders are making purchase of Rs. 1 lakh on the behest of black money holder, then they are compensated for the job done and are paid with the money above then they invested, say Rs. 1 lakh 20 thousand.
The stocks will be retained for a period of one year and after that as the stock prices goes up, the black money holding investor begin to sell their shares and earn huge returns while the investors that invested their white money bears huge losses that happens only on the displayed screen but not in reality. In reality they are paid back by the black money holder through back channel and as for black money holder, they managed to turn black money into white money and also gets the benefits of evading paying tax on the long term capital gains.
3. How to convert white money into black through trust
It is the most preferred way as to how to convert black money to white in India through the medium of donations, charity or investing in trusts. What happens is the black money holders themselves formulate the bench of trustees of a particular trust that they have opened for advancing some social causes. The executive bench works for the black money bearer. The black money is donated as a charity and the black money automatically gets converted into white money.
4. How to convert black money into white money in India through Selling precious jewelry
In this topic, I will tell you how to change black money to white money through the medium of selling precious jewelry like gold and silver. The bearer of the black money goes to a jeweler and give the jeweler the amount of black cash that he wants to convert into white money. The jeweler accepts the money and give back the check of same amount by cutting some percentage say 4-5%.
In order to make the transaction look white, the jeweler also provide the invoice of sales made of jewelry, specifying the amount of sale transaction. Now that the money is white, the person who converted the black money also doesn’t have to pay for capital gain tax as gold is a personal possession on which no interest is charged.
5. How to turn black money into white money through the way of receiving gifts
One condition for such conversion to happen is that the person who are asking for such transaction must be in possession of white money. You can ask your friend or relative to gift you a certain sum of money as the money is white and it is a gift then no bank or income tax department is alarmed and causes no action. You can send the black money for the same amount to the person who gave you white money in return.
This article is only aimed at exposing ways of how to convert black money into white money in India. I out rightly reject and condemns the uses of such illegal means.