Ways of converting Black money into white.

There is no short cut way.only way to pay tax

Apply for a Cash Credit or hedge against or speculate, it is not illegal unless where you convert money today at the spot rate and as far as you pay taxes!!!

There is lot of ways by which you can save taxes...

1. Transfer your income to any other person who does not have taxable income

2. Get a free gift from friends at your marriage in consideration for the same you can give them ther benefits etc

as of now these 2 ways are coming to my mind but if we think technically then also there is lot of loofalls in IT law which you can get benefit but you may have to fight litigation

3. Also if you are going to buy anything then use borrowed money instead of your own in that way you will get benefit of interest paid

plz share more ways to convert black money into white

Converting black money into white is money laundering.

if u have black money then pay tax on it as income from other sources. If u don't want to pay taxes , ask ur relative to pay a hefty amount by cheque or an equal amount of cheque against cash in black that u have and give ur money in cash to that relative.Make sure the relative is close to you.In that case u will be exempted from paying tax.

The cheque amount can be invested in ELSS or mutual funds if u want to grow ur money...

i think ther's 1 way bt i m not too sure.......lets see..

If u hav any property maybe hp, machinery etc. u can pretend to be rented make a fake contract of rent with some party...recieve the money by cheque getting done with tds n all....then all money will be converted in white.... but u will hav to show it in ur income statement...n pay taxes too..thats only a type of losss

let me know wat u think/.....

There is only one way to convery Black money to White. Add that to your Incomes and PAY TAX ON IT.

All other methods are complicated & may land you in trouble.

I would recomend the recommendation of Ayushraj.. It is the best way of converting the black into white.  Secondly, on a most respected and a helpful site like "CA CLUB INDIA" a discussion that deals with playing foul methods should be avoided.

Dear Ayushraj,

Even when the amount is added to income,don't you feel that queries would be raised on the source of the income?Can a person just add any amount to "Income from other sources",pay tax on it and sleep peacefully?

This forum is meant to help genuine taxation and other statutory issues. Black money is a criminal activity and posting such queries and then providing expert advice on such issues is like abetting to crime.

I believe that we should respect the sanctity of our profession and avoid posting any such queries which brings disrespect to our profession.

There is a very thin line between tax evasion and tax planning. Hope we people adhere to the correct methods.

Cheers...Mukesh

1. if u convert black money to white u will have to pay income tax on the income earned on the investment of white money. 2. if u'r purchasing a property you should register its full market value and not at u'r wish if u desire not to have any it raid etc due to false registration deed.. if u'r sources are not enough in white take a loan from bank or cash credit from your friend or fake jewellery sale bill profit on which is exempted if u'r investing in hp and make sure u can tell it as sthridhan. (sthridhan cant be 100kgs of gold just abt 1 or 1.5kg can be believed and that 2 based upon the social status of the bride side at the time of marriage. you shall also procure wealth tax returns in any available with your inlaws.. most of cases this is not going to be available.)3. if u want more ways contact me personally...... there are various ways...... to do so. 4. the more of white money u invest in your stocks your vat tax will increase and u'r income tax will also increase and your own profit will be less as many people are selling goods by doing business in the style of KACHA BILL wagera.. in the market n exempting both VAT n Income Tax. which most of the buyers dont know and they even pay the VAT charged in the Invoice bill which is never presented in front of the authorities ......... if any one gets anger reading this practical realities pls dont tell me anything I've said whts going on....

a person in life shall not add as income(black money) from other sources to declare his black money--- reasons:

1. authorities will send u scruitny letter U/s.143(2) for sudden declaration of higher income.

2. they wil make it as undisclosed income of previous years and will scrutnise about 5 previous years n present year.

3. you may also have to pay penalty.(in some cases the officers raise a peanlty of 200% also going to appeal or tribunal will also not help you )

better is you go to the commissioner of income tax.

delcare your black money.gold etc. in a letter to him(submit it to him) and also orally

and then file your return of income along with such letter copy.

they may conduct a raid or scrutny (you will not have to take tension produce records of your black moeny accounting) and if they find as same as you declared to the commissioner of income tax,you will not have to pay penalty for being good human being and comming forward to delcare income 

this to be done if you wish to have no more black money with you.

 you may convert your black money in to white money by these activities

 do contract to sell any capital asset and get advance money for it, and forfeit the advance money (u/s 51)