Converting Black Money into White. (preventive measures)

I buy a flat for 45 lakhs. seller demands 20 lakhs in cash. So, I take my deposits of 15 lakhs, take a personal loan of 5 lakhs and pay in cash. Here white money is conerted in to black.

conversely, if i sell my house worth 25 lakhs for 45 lakhs, the buyer will have objection because he has to pay extra registration fee, so I bail him out with extra money out of the black money kitty. If buyer is my friend, all the better. So I convert 20 lakh black to white!

One can read all types of adv in the newspapers demanding full cheque or "max cheque". It is universally known that all property deals have a cheque and a cash transaction. Does our finance minister not know it?

Unique ID project will help in future to stream line this proceess and certain strict measures have to be implemented. However, how will the measures be implemented if our lawmakers have black real estate all over the country.

Jai Ho!

Sec 13 of Anti corruption act discusses about disproportinate assets and mainly used for smaller babus

A little amendement covering All India Cadre and inclusion of politicians will be of great help.

a more close look on incometax offices ,sales tax of states coupled with verification of online transactions

of bank accounts by third  party   will reveal more information

All Mining , minerals and gas exploration are some of sourecs .

Government should announce the currecny from next finacial year will be printed with expiry date (18 years from day of printing) there by the old currency will losing its value in next three year at a deprecitaive manner.

ie at fist yer 100% can be exchanged for new currency

at second year 75% can be exchanged for new currency

at third year 50% can be exchanged for new currency

after third year whole old currency will lose its value and  accounted void.

Measures like this   will convert  all black money to white.

Jai hind.

Almost 90% of the Black-money un India has three sources, in the order of size :-

1. Government Contracts/ siphoning of Government money through welfare schemes.

2. Tax Savings by Industrialists.

3. Real Estate.

The biggest generator of the Black-money is government itself and since the benefiacries are Netas and Babus, the Governent does nothing. The black-money in government is mainly generated through kick-backs and siphoning off government money meant for welfare schemes for the poor-the famous Rajiv Gandhi Statement that "Out of Rs.1/-, only 15 paise actually reach the poor. Keeping in view the Government contracts and money spent of welfare schemes, one can imagine the amount of black-money generated by the government.

Second big source is Industries, business and trade. Here, black money is generated by simply manipulating the accounts and books by deflating the production and sales figures and consequently savings of taxes. Its an open secret that our neighbour Kirana shop-owner earns 2000/- Rs a day but doesnt pay any income-tax. Because he fudges his sales-book in connivance with corrupt government officers.

Third big source is buying and selling of real Estate. Here the problem is the huge difference between Circle Rate and the actual market rate. In majority of cases, this ratio is 50:50 or 60:40 because of the difference between the Circle-rate and the market-rate. There have been attempts to bring the Circle-rates at par with market rates but here the buyers have to bear the brunt of increased stamp-duty.

very informative and request some possible solutions for this menance please?

Some of the officers assests seized by state U/S 13 of the ACB act and why

not state plan for amendement of the act for inclusion of politicians and others too.

Dear Sir,

I bought a flat at Rs. 30 Lac - 3 yr. back (2008), Got 19 Lac loan from bank, Remaining (Rs. 11 lac) i got through friends and personnel loan.

Now I have Rs. 13 lac loan left. I am sellingl flat at Rs. 38 Lac, but buyer, except bank 13Lac loan, want to pay (38-13 = Rs. 25Lac) in cash. As i am a s/w engg, I have paid full tax on my income.

Now i have returned whole money of personnel loan and friends i.e Rs. 11 LAC also. I ahve no other income source.

So please tell me Can i accept Rs. 25Lac in cash  ??? is there any implication.

Thanks,

Subhash Madhukar

Hii, can some one tell me what should i do for my black money ??
How can i clean it?

Kosar ji,

"can some one tell me what should i do for my black money ??"

It is a big topic...but if it is just tax evasion then better pay 30 tax.

Rmember every 100 bucks that you earned by hardwork .......70 bucks are always WHITE....but the remaining 30 bucks which are supposed to go to govt ........... do not reach there....but in avoiding those 30 to pay to govt...a person ends up converting his 70 bucks ........ WHITE into BLACK!!!!

But following scenario is differnt than above........

Those thugs who have got free money (like a corrupt peon in 'Mantralaya/Vidhan Sauda'......... let's say ........................... who happens to earn more than even some of the judges!!) ........... they ensure that they show some fictitious businesses ..............................  in aged parent's , house wive's names ............. and baaa-kaaydaaa pay tax 30%!!!!!  .... and convert 70 bucks of FREE money  into WHITE and legitimate money.

Un-Accounted money created due corruption is different than Un-Accounted money due to tax evasion!!!

Former category is more dangerous than latter!!!

why 1000 note is printed? ... for the sake of ease to store hard cash !!!!

Some say the purchases and construction of any big dam/ project cost  is inflated

by nearly 30-40% to accomdate middleman . Is it true?

is it ithe case of Kalmadi and Raja ?

Some says the welfare activities are for political babus and not for white card holders

as they recive less than 10% .Is it true?

Some say that national assests like natural gas, iron ore or china clay imagine even granite can be sold in

euro market and once you have a connection you can swindle hundreds of crores even from river sand

is it true?

now a days usual money is called black as everyone have a lot of stuff in their hands.. how it will convert in to white..ok take this.. u are buying a land worth 20 lakhs but you insist in buying it on 40 .. take in to account that you have 1 crore of black with you.. you show goevernment that you bought that land for 1 crore.. with a loss of 20 lakhs , remaining 80 is converted into white!!!! (with a land worth 20 in your hand)

hello sir in this para u said  that u can show government that u bought land for 1 crore so that 80 is converted into white!  if the government ask how did u get those 1 crore??? then what shud we answer ??? as 1 crore is black money!!!

@ SHREE LAYER

now a days usual money is called black as everyone have a lot of stuff in their hands.. how it will convert in to white..ok take this.. u are buying a land worth 20 lakhs but you insist in buying it on 40 .. take in to account that you have 1 crore of black with you.. you show goevernment that you bought that land for 1 crore.. with a loss of 20 lakhs , remaining 80 is converted into white!!!! (with a land worth 20 in your hand)

hello sir in this para u said  that u can show government that u bought land for 1 crore so that 80 is converted into white!  if the government ask how did u get those 1 crore??? then what shud we answer ??? as 1 crore is black money!!!

Real Estate mostly cannot be sold at 100% white....mainly because of the stamp duty increment....but there are some interesting issues....anyone buying property at 100% white cannot sell it because few people are willing to buy it...even buying at full white would invite Income Tax authorities. as your deal would stand out as a multiple of circle rates 

However, let me point some additional ways black is converted to white....in business circles..

A in India sends to B in a foreign country 100k dollars through the friendly neighbourhood hawala dealer or an exporter (who in turn deflates his exports to send this money)...

Now this B can send this money as White back to A:

- By investing in A's company in India as a foreign Investor (A incurs the risk that B may actually decide to become part owner of A's company with A's own money). B may also invest only 10k as share money and 90k as share premium. Thus, A gets 90K in his company's reserves as white....A does not control it directly but the amount is white as reserve in A's company.  

- By sending this money as Advance for buying goods from A's company (Again the advance remains as credit in A's books and needs to be rolled over periodically by exports & fresh advances).

more than people in india they are storing more than blackmoney like money, property or any (or) they depend on some binomees but here there is no problem because we converting your blackmoney into whitemoney with tax paying to government.

so here no any fears bout your money just sweet dreams to your eyes, happy smiles on your face, secure life with your family and friens.

thanks

chaitanya