About 40 days of demonetization getting over here we come with the best 10 techniques to convert your cleverly acquired black wealth into purely white indeed through these innovative ideas.
1. Demand Draft (DD):
Demand Draft or cheque is bill issued by the bank to pay a certain sum in favor of specified party or an organization. Demand Draft is most popular and preferred way of payment as the risk of non-clearance or cheque getting bounced is nil, because it is the responsibility of the banker to make the payment to the party.
Follow these steps to convert your Black money to White.
- You can make DD in favor of any organization up to maximum of Rs. 50,000 (Fifty thousand rupees) via cash (old 1000 and 500 notes).
- Make Multiple DD in favor of different organization and later cancel your Demand Draft
- You will get the payment back from the DD issuing bank in the form of new Rs. 2,000 notes after deduction of substantial amount as bank commission.
2. Using political parties:
Since political parties can collect donations of Rs. 20,000 or less without having to reveal who donated the money, let alone their income tax PAN number, they will have the easiest time with demonetization. A political party can say it collected this amount of cash in old currency donations before demonetization and demand that it be changed into new currency by 30 December. That also raises the fear that political parties could actually use this method to launder black money of individuals within and without their party.
Since agricultural income is not taxed, a farmer can easily say he got this much cash from the mandi by selling his produce before demonetisation, and here's the old currency, now please exchange it for new one. In this way, any farmer could help launder money, from old currency notes to new ones, for a cut. An investment advisor told , "The agricultural income in this country is going to be fabulously high this year, immaterial if the crop is good or poor."
Gold prices shot up because many black money hoarders rushed to jewellery shops as soon as prime minister Narendra Modi made the demonetisation announcement on 8 November. Many black money owners made the most of four hours they had and bought gold till . There have also been reports, again, of gold selling in transactions. Jewellers happily sold gold at a high premium. In some shops the demand was so high there was pandemonium with buyers fighting amongst each other to be able to buy first. The government has asked top jewellers to give details of gold transactions after the demonetization.
There are reports of people giving their black money to temple 'hundis' or donation boxes. Temple managements will show this money as anonymous donations, exchange it for new currency notes, keep a commission for this service, and return most of it to the owner. The government has already clarified that temple hundis . ABP news showed a sting operation in which the priest of Govardhan temple in Mathura was willing to convert Rs 50 lakh of black money into white for a 20% commission. There have been such reports from different parts of the country.
Since such institutions still do a lot of their work manually, they are reports they have issued fixed deposit receipts in back date. Owners of black money have reportedly been able to get various FDs in such institutions in names of various villagers in back dates, and will receive new currency notes in due course, after paying a cut to those in whose name they deposited the money. Non-banking financial institutions who accept such deposits are also reportedly acting similarly in helping convert black money into white. Such institutions have long been to be indulging in money laundering. The level of regulation of such institutions differs from state to state.
As the poor stand in queues at banks to exchange their currency notes, there are reports of them being used to convert black money into white. This doesn't even need a co-operative bank. Black money are reportedly finding poor people to deposit Rs 2.5 lakh in cash, since the government has said deposits up to that amount won't be questioned. Such people will then ask to withdraw the entire amount soon, keep some to themselves and return most of it. Since this requires trust, black money hoarders are first and foremost using their staff and their relatives.
Funneling money through poor people whose bank transactions will not arouse suspicion, is giving way to many creative enterprises. There are also people willing to give interest free loans to the poor - which may seem like a good impact of demonetization but is actually an effort to convert black money into white and defeat the purpose.
Businesses having black money have reportedly used old notes of Rs 500 and 1,000 to pay advance salaries for anywhere between the next 3 to 8 months. The idea is to pay each employee less than Rs 2.5 lakh - the limit above which deposits will be examined. In Gujarat, some businesses are to have opened salary accounts and deposit advance salaries, keeping their debit cards with company itself. This way they will be able to deposit old currency notes before 30 December and withdraw new ones easily, without attracting the attention of the income tax department.
10. Booking and cancelling train tickets.
Since old notes are being accepted till 14 November to book train tickets, there has been a surge in booking expensive train tickets that people intend to later cancel and get refunds in new notes, with a small cancellation fee. The number of expensive first AC tickets booked per day have increased by many times. As a result, the railways have said refunds won't be in cash. But since these bookings are being made through travel agents, even refunds through electronic transfers mean the travel agent will be able to return large sums in new currency notes.
Note: These are not the tips to convert the black money to white but are some of the tactics used by ill minded anti nationalist to bypass the demonetization.
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