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How to convert black money into white

ankita gandhi (student) (5908 Points)

03 January 2017

e have a client, whose annual turnover is around ₹25.00L. This is what usually shown in returns.
A year back they had given money to A of ₹25.00L in cash. Now A is going to invest that money in some housing project as approved by Central Government and our client will be partner in that. So they have to show money in white around 25-50L. Plz tell me how can they show it ? I had these ideas :
1. To take a loan from some other person through cheque. What can be consequences of this ? Is it safe ?
Plz guide me in this regard.

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15 Replies

CA Manish Mishra (Qualified Chartered accountant) (507 Points)
Replied 03 January 2017

Wel your surname is Gandhi, respect it. This is not what a professional do and if they do that is unethical. U have written that u are Student. Guide him not to convert instead disclose it and live a peaceful life

3 Like

Amit Dixit (Article Asst.) (35 Points)
Replied 03 January 2017

take advantage of IDS scheme

1 Like

Akshay (student) (69 Points)
Replied 03 January 2017

Yes take IDS scheme advantages

ankita gandhi (student) (5908 Points)
Replied 04 January 2017

I know it's wrong, but I really want to help as these are villagers and it's savings of family from so many years. They were not knowing about taxes and all earlier. But they came to now, when they went in banks to deposit their money. And the sum 50℅ tax is too much for that big family. They thought the person who was filling their return was doing all good, but unfortunately it's not, and as per me I really want to help them as a person like they are illiterate, don't know all these things. So somehow I want to help them.
And yes obviously I respect our professional and even agree that wrong person should get punished but what about these people, who did it unknowingly.
Hope all people who made comments here have some view.

3 Like

ankita gandhi (student) (5908 Points)
Replied 04 January 2017

Like don't anyone feel that it's our responsibility or government's to educate them and make them know what's taxes are.

3 Like

Dharmesh (Student) (1025 Points)
Replied 04 January 2017

@ ankita: i don't know whats the asnwer to your question but would like to tell you continue to help them and find a way out. There must be some way out for sure.

CA VISHAL GUPTA (none) (225 Points)
Replied 04 January 2017

please dont post unethical questions on such public forums 25 lacs in not a small sum source must be justified or else let IT,CBI do their jobs !!

Zulfikar Surti (Student) (431 Points)
Replied 04 January 2017

Kudos Ankita. go ahead. no need to think about ethics and all that crap. It's a pass time game for hypocrites. Instead of asking for advice here, where people do often wear masks, talking ideals and values over here and offer bribe to tax officials from their offices, get real paid advice of a CA.

3 Like

CA Manish Mishra (Qualified Chartered accountant) (507 Points)
Replied 04 January 2017

@ Ankita It is not government responsibility to educate businessman about tax liability. As a responsible citizen we can't depend on government for everything. Generally when people do business they should be aware about their responsibility as well. Even not then he should have contacted the Professional who filed his return.

Second it can't be assumed that in any case someone has 25 lakh cash in his hand and that too for a small trader without knowing consequences.

This is for hypocrisy, now days people has become so much corrupt that now normalcy look hypocrisy to them. Common guys not all are same trust me

(Guest)

People talking about ethics in the comment section needs to do some introspection first. CA firms are known to manipulate b/s of client for IT purposes.

As ur question goes can u clarify a bit more please.

(Guest)

People talking about ethics in the comment section needs to do some introspection first. CA firms are known to manipulate b/s of client for IT purposes.

As ur question goes can u clarify a bit more please.

ankita gandhi (student) (5908 Points)
Replied 04 January 2017

I don't know much things, but someone who is approximately of age of our grandpa and that person is pleading and just helpless, then how one can be so wrong.
My mind has just stopped working there.

2 Like

Zulfikar Surti (Student) (431 Points)
Replied 04 January 2017

Ankita, do not curse urself for helping others. Infact, CAs in india exist to help their clients from govt. through corruption. You are just playing your game you are supposed to. I again repeating my earlier comment you should consult some "good" CA instead of asking for advice here. People here do wear mask.

P.S. Good here means who can manage tax officers.