Best Ways of Converting Black Money to White Money
India is a huge country with thriving economy. India’s total currency by GDP ratio is 12% which translates as huge transactions in Currencies. As per statistics in 2016, a total of 109% of the hike has been reported in transactions using 500 rupee notes against 2011 which mean a lot. India has black money in Lacs Crores, however, it is either hidden or stashed in Swiss Banks which traps growth of infrastructure in India and other amenities which would not be the issue if taxes were paid honestly. People invade taxes which gives rise to black money. The recent Mandate made by PM Narendra Modi, from 08th November, 500 rupee notes, and 1000 rupee notes are no longer legal tender which came as a shock to people of India. The people stash Black Money in the form of this two high denomination notes and to curb the Black Money in India, PM of India had discontinued the usage. He has suggested the ways exchange old currency for new currency, however, black money will be seized by the Income Tax Government. Google has reported the most searched query which is Ways of Converting Black Money to White Money. Here is an explicit guide how people are doing now.
These people have a huge stack of 100 rupee notes which they use to earn more money. A middleman can exchange his “Black” 500 rupee notes in return of 100 rupee notes with 15% to 30% cut or commission. If you are thinking on depositing or exchanging your old 500/- or 1000/- Notes, then you should be extremely careful as Income Tax Department has already started issuing notice on higher deposits to investigate the source. Note Mafia is the way out to get new 100/- Notes that actually converts your Black Money into White.
Find a Money Mule:
The government has stated that there will be no investigation for deposit of 2.5 Lac rupees in Savings Bank and any higher amount without proof or source of income can get you in trouble. People with “Black Money” have started opening Bank Accounts for relatives and employees or any third person with a commission to the bank account holder so that the money can be converting into White without being detected by Income Tax Radar. As per recent data, the number of new Jan Dhan Accounts have shot up with quick pace which means the Money Mule system is in full swing.
Farmers as Money Mule:
Unlike any ordinary citizen, Farmers enjoy the privilege of deposit money without any limit by simply proving it as the money yield from product sell. Now the people with stashed Black Money are using Farmers as Money Mule so that the Farmers can deposit money on their behalf in order to convert their “Black Money” into White.
Except for Money Mule technique, many Employers have started paying salaries to employees in advance. The range of advance salary is reported between 03 to 08 months which could potentially convert Black Money into White Money efficiently. Many employers have started opening Bank accounts for their employees and stashing their Black Money in those accounts. They have withheld their Debit Cards and Cheque Books.
Ram Ka Naam:
This is potentially the scam reported. Many Black Money hoarders have started donating money in the Donation Box where the Temple Management exchanges it in their Bank as anonymous donations and then hand over the White Money keeping a cut as commission.
Bogus Loan Entry:
This is one of the most popular ways to convert black money into white money. Here, the people with Black Money handovers money to his/her relatives or friends or acquaintances in form of Loan. Now they accept the Cheque as repayment of loan giving the proof as receipt of Loan. Here the transaction makes the hoarded Blackmoney into White. However, the people practicing this must understand that they are being watched by Income Tax Department and someday or other, they will be get entangled which will result in seizing of their Property and Black Money along with a penalty of 200% and in some cases even jail.
The Insurance sector in India has noticed sudden boom as Insurance doesn’t attracts Income Tax. Now here, the people of Stacks of Black Money can purchase their new Insurance Policy and probably all of it with monthly or Yearly premium of let’s consider 60,000/-.’The first instalment is paid in cheque as it reflects in the Bank Account and rest are paid in cash with doesn’t. Now you are getting rid of Black Money and actually getting back White Money which doesn’t impose an income tax.
Foreign Direct Investment has been encouraged in India for a long time now. The people having a lot of Black Money can make the use of FDIs to get their Black Money converted into White with some commission. Here, the Person can search for people living outside India or search for a dealer that has representatives in different parts of the World. The money goes to all the representatives as cash. The People living outside the country transact that money into Black Money Holder’s Account which is termed as FDI and actually converted the Black Money into White.
Disclaimer: There are people who might use unsuspecting people to convert their black money into white. This story is to make readers aware of their ways, to take the necessary precaution.