10 Precautions While Converting Black Money Into White Through Bank-Stock Market-Paying Tax, “Do’s” & “Don’ts” Ways/Facts

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Precautions While Converting Black Money Into White Through Bank-Stock Market-Paying Tax

10 Precautions While Converting Black Money Into White Through Bank-Stock Market-Paying Tax, “Do’s” & “Don’ts” Ways/Facts: While talking about “BLACK MONEY” first of all we need to know that what is it…? Black Money is the money on which income and other taxes have not been paid. There are lot of sources of Black Money for Instance Some Indian corporations practice transfer mispricing, by under-invoicing their exports and over-invoicing their imports from tax haven countries such a Singapore, UAE, and Hong Kong.  Politicians, Political Parties and corrupt higher officials of government and its institutions takes bribes from foreign companies and park or invest that the money abroad in tax havens for transferring to India when needed. Rather than these sources there are many other sources are also there in India like Black money in Swiss bank, Domestic Black Money, SIT on Black Money, Criticism of Government etc.How to Convert Black Money into White Money

Do You Want to Convert Black Money into White Money

So if we further talk about the black money, we all know that the NDA Government has unveiled a new scheme against the Black Money, under which those with Black Money (Undisclosed Income) and assets located in India can come clean by paying a tax 45%. PM Minister Narendra Damodardas Modi had announced complete injuction on Rs 500 and Rs 1000 notes in the India. Experts says that the scheme should b constructed as an opportunity for tax offenders to come and clean. The scheme gives a window to persons having black money to come clean. The central govt has set Dec end 2016 deadline for exchanging demonetization Rs.500/- and Rs.1000/- currency notes with the new Rs.500/-and Rs.2000/-currency notes.

Now peoples who hold black money are very much tense to know the ways of how to converting their black money into white. So here we provide the some ways along with the precautions to convert black money into white.

Precautions while converting Black Money into White ( Do’s and Don’ts Options)

  • People can deposit the maximum amount of 2,50,000 upon the terms and conditions into the bank account.
  • Another way of converting Black Money into White is by showing income as agriculture income.
  • Avoid Blundering for example seeking assistance of your staff.
  • People also can do charity or they can also formulating any Trust.
  • People can also convert their black money by investment in cash.
  • Amount of money of Rs 10Lac to Rs.50 Lac shown as deposited in any account but it is not mentioned to fall into investigation purview of government.
  • Another popular way to Convert Black Money into White is getting black money as gift from any relative or friend.
  • By declaring the Black Money to IT authorities and paying tax on this money to convert in White.
  • Show your income into cash to convert your black money into White.
  • Convert your black money to white with the application of Sec 51 of the income tax act, 1961.

What is Black Money ?

So now let’s talk about What Exactly is Black Money ? Black Money is nothing but undisclosed wealth or we can also say illicit income. It is also said to be money which is earned or generated from undisclosed sources, in other words illegal sources. Black Money is collected without paying tax to Indian Government, but is amassed in the Banks in the shape of Deposits in Anonymous Names, invested in the prohibited Crooked Business aimed at reaping the Wealth as White Money in due course of time. So this is what we call Black Money.What is Black Money

Converting Black Money into White Money Through Paying Tax-Bank-Stock Market

हर किसी के पास 500 और 1000 के नोट होंगे, सवाल है जिस कैश को इनकम टैक्स रीटर्न में नहीं दिखाया गया तो आखिर उसका क्या किया जाये ? कही गबराहट में कोई ऐसा कदम नई उठा रहे जिससे आप और ज्यादा फस जाये या अपराधियो की अनजाने में मदद कर बैठे ?

और इसी के साथ आपको पुराने नोटों को बदलने में काफी मुश्किल हुई होगी जिसके के लिए हम आपके लिए समेट कर ऐसे जानकारी लाये है जिससे आपके मुश्किल काफी आसान हो जायगी |

Experts’ Viewpoint (Opinion) Penalty Slab
Central Government Permission should not be identified as any Amnesty Scheme (Implying an Opportunity to allow Indian Honest Citizens lead a Peaceful Life thereby by being part of National Interest Linked Decision.In case of Deposit by any Taxpayer, say a sum of Rs. 10.00 Lac deposited by an Individual who had also furnished precise details on the Source of Income at the time of payment of the Tax, then he / she shall have to pay Tax as per the Slab they fall into. On the contrary, failure to either justify the Amount or the observation that depositing of only Rs. 5.00 Lac were found up to the satisfaction, in such circumstances, the Entity shall be asked to pay a Penalty up to 200% as per the Tax Slab. In case of any Tax-Payer Individual, Account holder would neither file Return nor disclosed Exact Source of Income; then they are liable to pay the Penalty @ 200% against the Undisclosed Income deposited as detailed here under.Deposit of up to a Sum of Rs. 2.50 Lac remains exempt from Payment of Tax.

Tax of Rs. 75000/- against Deposit of Rs. 5.00 Lac.

Tax of Rs. 3,75,000/- against Deposit of Rs. 10.00 Lac.

Tax of Rs.12,75,000/- against Deposit of Rs. 20.00 Lac.

Tax of Rs. 39,75,000/- against Deposit of Rs. 50.00 Lac.

Tax of Rs. 84,75,000/- against Deposit of Rs. 1.00 Crore.

Precautions While Converting Black Money into White Money

How to Change Old Demonetization Currency Notes at the Bank, General Post Office and Post Offices

By following the procedure given below, you can easily change your old demonetization currency notes at the bank, post offices and general post office.

Step 1 – You can exchange your Rs 500/- and Rs. 1000/- Demonetization notes in the banks upto Rs 4000/- in the new notes of Rs 500/- and Rs. 2000/- before 24th November 2016.

Step 2 – Your will also have to fill the Demonetization Currency Notes Changing Form in the both Hindi and English Languages. Forms are now available for downloading on the official website of RBI.

Step 3 – You need to carry the Original Documents as well as Self-Attested Xerox to easily claim their proof of identity in the form of Aadhar Card, PAN Card, Driving Licence, Voter Identity Card, MNAREGA Card, Passport etc to exchange their Currency Notes with the New Rs. 500/- and Rs. 2000/- Denomination Currencies. You need to remember that you will also have to mention the Amount for Deposit and Purpose thereof on the Photostat.

Important Things to Remember

In case of any kind of Clarifications, Assistance, Guidance, the customers are suggested to communicate with the Reserve Bank of India through the credentials given below.

E-Mail Address: publicquery@rbi.org.in

Helpline Number: 022 – 2260 2201 / 2260 2944

Stay tuned with us for more further updates.

If you have any kind of queries or doubts about Precautions While Converting Black Money Into White Through Bank-Stock Market-Paying Tax, you can discuss with expert team via comments section given on this web page.

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