7 ways that businessmen are using to convert their black money into white

After demonitisation of high value currency notes, a lot of businessmen are using different ways to convert their black money to white money. Though the practice of accepting black money is illegal, but it is an age old practice all over the world. Here are some of the ways that are used by businessmen to deal with all the unaccounted income: 

 

1. By showing fictitious sales :– The most famous and simplest way of converting your black money to white is by showing fictitious sales. Now fictitious sale means a sale without an actual exchange of goods or services. This a mere journal entry in your accounting books. Usually, businessmen generate a false invoice to support such transactions.

2. Increase in the sale price of an asset :– Lets understand this point with an example. Just assume that there is a buyer “B” and a seller “S”. Now Mr. B has a lot of black money with him. The sale price (as per Mr. S) for the property is Rs. 50 lakhs. Mr. B will ask him to sell the property to him at Rs. 65 Lakhs and promises to pay the additional stamp duty on the inflated price. Furthermore, he will ask the seller “S” to deposit the additional Rs. 15 lakhs in installments of Rs. 50,000 in his account. This is how the buyer “B” will get the property plus he will be able to convert his black money to white without getting in notice of an income tax officer.

3. Hawala Route :– Hawala is the method of transferring money without any actual movement. This method involves very high risk and is generally adopted by big businessmen. Lets assume Mr. X, a businessman, politician or officer in Delhi has Rs.50 Lakhs in cash. Since it is black money, he can’t deposit the same in the bank. So, he searched for a Hawala agent. The agent takes the cash in Delhi and through his counterpart, hands over Rs.50 Lakhs worth in dollars/pounds/dirhams in a foreign country to his/to his representative. Mr.X gets this money back to India as Foreign Direct Investment (FDI) or seed fund in a private company, etc. Or he may choose to invest abroad in properties/shares. Thus, he converts black money to white without paying any taxes.

4. Depositing in banks less than Rs.50,000 :– This route is taken by small time operators. They open multiple bank accounts and deposit cash upto Rs.50000 at a time. Remember, if you have to deposit over Rs.50000, you have to give PAN details to the banker. Mostly, these kind of petty transactions goes unnoticed by the income tax department and thus small businessmen play safe by adopting such a route.

5. Agricultural Income :– The best way to convert your unaccounted income is by adopting this method. Agricultural Income is exempt from Income Tax. This means the money earned from the sale of paddy, pepper or wheat is exempt from tax. So, what a business man does is, he  shows a fictitious sale of some agriculture produce to some fictitious person at inflated prices. The entire collection done from such transactions can be freely deposited into bank account without a single word from any officer. However, for the sake of record, these people will acquire or show the proof of ancestral property in villages through wich they have produced this agricultural income.

6. Gifts from relatives and friends on occasions :– Any amount of money received from relatives (gift) is exempt from Income Tax. It is an easiest way to convert black money to white. Businessmen just show that they have received some cash on the occasion of your son’s or daughter’s birthday as gifts from relatives. However, Gifts from non-relatives and friends attract income tax. But those who have huge sum of black money shows gift and pay taxes. Still the money earned through corrupt practices can be converted into white (after paying taxes). 

7. Sale of Gold and Diamonds :– Well-known professionals suggest this route. Suppose, Mr. XYZ has Rs.25 Lakhs cash and gives this amount to a Jewellery shop. The Jewellery shop will generate a invoice that he has purchased Gold/Diamonds worth Rs.25 Lakhs from Mr. XYZ and make a payment in a cheque to Mr. XYZ. For facilitating this transaction, he will charge a fee. Thus Mr.XYZ converts his black money into white, without paying any income tax. However, usually big businessmen involve in such practices as they need to have good links with the jewellers as these type of high value transactions involve huge risks of being coming into the notice of Income Tax officer.

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    Even Apple has removed Blockchain utility from its app retailer to ensure compliances with legal guidelines of various jurisdictions, together with India.
    Ankit, who has now been enjoying for the final four years often, brings
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    Many subtle on-line gambling rackets have been busted by Indian Police up to now.
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    Spacious decks, multi cuisine restaurant, and music make it completely gratifying place to play and occasion. The Mercury-branded
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    It is anticipated poker can be considered to also be exempt from the nation’s strict playing laws if the Supreme Courtroom
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    The glitzy casino specially caters to overseas tourists, because it homes a VIP room for prime-stakes poker aficionados.
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    still in a repair. These 108 players for 12 teams could be chosen through 70+ rounds which would happen over a interval of 3 months beginning February next year.
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    Cyber due diligence for Paypal and online payment transferors in India should also be ensured.
    Whereas the language used right here is
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    is likely to be considered gambling. KhelPlay Poker Weblog brings you the knowledge on enjoying on-line poker in India.

    Sangeeth ‘Samoh’ Mohan, a well known poker professional from
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    This night too noticed a record-breaking area of 94 players, the first time ever that there is been over 90 gamers in a buy-in of this magnitude.
    Barely totally totally different from Texas Holdem, Omaha
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  • Panjim in Goa has many floating casinos which have poker rooms,
    slot machines, and roulette tables on cruise liners anchored within the
    Mandovi River. By the top of late entries, there were a complete of 78 gamers who would do battle
    to take residence the title. Apply your poker skills
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    Bankroll Administration is among the key sides each poker player must master, to
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    By the time late registrations got performed, there were precisely 100 players battling for the title and the highest 5 finishers
    would additionally obtain that seat into the Saturday night time match.

    All of us have our limits and if we play for unconfortably high stakes and begin to really feel anxious about
    profitable or dropping, then its probably that we would be unable to play to our
    full potential. To put it simply, the general laws of India regarding playing apply except a state particularly sanctions it.
    So most have sanctioned lotteries, which might otherwise actually
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    There’s additionally another act which could be thought of
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    Le logiciel PokerStars d’avant-garde se télécharge gratuitement et est disponible sur
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    Delhi-based mostly Nikita Luther is among the few women taking part in skilled poker and was not too long ago chosen to play for and signify Adda52.
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    The only take a look at laid down by the Indian judiciary is that ability should dominate chance for a game to be described as involving talent.
    Take for example the option of Muck Playing cards/Show Playing
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    And he’s been at it for 11 years; the primary Indian to
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    The sport play needs to be easy and the deposit and withdrawal methods easy for
    me. The promotions do not matter a lot, as I’m a poker player and
    never just searching for freebies. Even though these websites are working in a grey market,
    they believe they are additionally working legally since rummy and poker have both
    been decided as ability games. We bring poker to India as no one
    else does and aim to spread awareness of the poker recreation in India.
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    Home to the largest poker tournaments, is your authorized
    choice to play on-line poker in India. So first off welcome to PokerNews India and
    we hope for a great deal of good issues to happen with your presence
    in the area of interest but rising poker fraternity of this nation. Further, techno authorized points pertaining to privacy , knowledge protection (PDF), taxation, information security,
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    That is why many Indians find it difficult to
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    The Controller Normal of Patent Designs and Trademarks the
    registration of the trademark has not solely been objected
    upon examination however has additionally been opposed by involved parties,
    indicating that there can be a prolonged legal battle
    for the possession of the Spartan Poker brand,” Sayta wrote. Charles joined the PokerUpdate workforce in early 2012 and writes every day news articles for the site. India is all set to have a professional league for this card game – The Poker Sports League. The Sikkim state government has issued its first license to an internet gambling operator; Future Gaming Options Non-public Restricted.

    Bringing in larger transparency and integrity into online poker in India will take the poker scene to next stage to compete the worldwide gamers on this do have that potential. The only hope of internet sites operating on-line poker, on-line rummy, online card games, and many others is that the Central Authorities formulates techno authorized framework that may accommodate on-line games and different Internet related points. As soon as the web poker sites realized that connect with players is the key and promotional occasions have been targeted to generate interest of poker players, the net model is significantly accepted and being touted as the next huge thing.

    However, there isn’t a mention of on-line gaming in it. Also think about the fact that laws pertaining to gambling are by and huge a state business, where the States have the legit authority to make laws with respect to it. True to its vision of harnessing expertise across India, the Poker Sports activities League will provide gamers an opportunity to play and be taught from some of the greatest gamers in India. Owned by The Deltin Group, Deltin JAQK is one of the premium entertainment casinos, offering ‘International Standard’ ‘High Quality’ Dwell Gaming expertise to the gamers.

    One main event was the Asian Poker Classic which passed off on certainly one of India’s casino ships (the Maharajah Casino). The Machine then again played his common brand of tight strong poker however wasn’t capable of convert it right into a ultimate table money finish. Poker nonetheless solely accounts for a small share of these casinos’ earnings but issues are slowly changing. Incomes the tag of being the primary Legal Poker Online isn’t any imply feat in such a conservative country like ours that has a murky view in direction of card games. Adda52 affords both rummy and poker, whereas Thrill Poker is at present just providing poker.

    Is best the second largest online Poker site in India that gives ‘No Limit Texas Maintain’em’ poker recreation. By the tip of the 2nd stage, there were more than a hundred players and the ultimate depend at the finish of late entries, one degree later, can be 104 players. The Info Know-how Act, 2000 is the sole cyber law of India and very few legislation corporations and attorneys are practising on this novel discipline. Nudurumati was managing the position of Expertise Leader for a number of business verticals in US, Europe, Asia-Pacific and India. The games offered on to play with Actual Cash are Texas Hold’em, Omaha, Seven Stud and these are games which positively require talent and intelligence. http://www.militaryairshows.com/UserProfile/tabid/57/userId/145522/Default.aspx

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    Whereas the courtroom did not rule out rummy as illegal, it
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    games. Faced with the techno legal points involved in adjudication of the legality
    or illegality of on-line card video games, the Supreme Courtroom
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    Other than the licensed online poker in Sikkam, which is limited to residents
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    Day 4 being the final match of the weekend has a lower turnout of sixty eight
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    The truth that this law continues to be in effect after
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    The net poker web sites in India enable enthusiasts to play poker for actual money in ring games, tournaments and contests.
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    Horse racing betting is also authorized off beam, and betting parlors exist
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    Launched in Oct 2013, the Amator is the results of detailed
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    A group, named the Public Curiosity Litigation, filed a
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    This includes on-line poker which has six lakh registered Indian users on a single website, Scores of younger folks have given up profitable careers to play full time.

    Charles joined the PokerUpdate staff in early
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    According to a report from The Occasions of India , local police within the metropolis
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