How to Convert Black Money to White in India

In four easy steps, We will show how you can convert huge amounts of Black Money into White. Using this simple procedure and loopholes in Indian Legal system, you can convert any amount of Black Money to White.

How to Convert Black Money to White in India

How to Convert Black Money

Step 1: Create a Political Party and get it Registered under People’s Act, 1951. It takes hardly one week time. Any one can Register a Party with Just Rs.10,000 Fee.

Step 2: Donate all your Black Money to your party in parts, with each part not more than Rs.20,000. Theses are ananymous donations and you can make them unlimited times. As per the Act, you are not legally bound to disclose the names of such anonymous donations.

Step 3: Go to bank and deposit all that money into your Political Party’s Bank Account (All this money is exempt from Income Tax).

Step 4: Withdraw the money as and when you need. It is all White now. (Political parties does not fall under RTI Act, so no one can ask how the money was spent).

(This article is meant to show the demerits in Indian Legal System and we do not have any intention to encourage such immoral acts.)

What is Black Money

In India, black money refers to funds earned on the black market, on which income and other taxes have not been paid or which is the proceeds of criminal activity such as bribery, kick backs and corruption.

The total amount of black money deposited in foreign banks by Indians is unknown. Some reports claim a total of US$1.06 trillion is held illegally in Switzerland.

In February 2012, the director of India’s Central Bureau of Investigation said that Indians have US$500 billion of illegal funds in foreign tax havens, more than any other country.

24 COMMENTS

  1. The other method is,as per sec 80DD, have 10(say)disabled people dependent on you (as assessee )provide them everything what they need.
    A flat deduction of 75,000 is allowed as a deduction
    So now you have saved around 7,50,000
    Spend what is required to them from this 7,50,000
    If expenditure is some 5,00,000 then rest of the money is saving
    Now increase the people to 100(say)
    Your savings will also increases along with service
    You are doing SAVINGS and SERVICE

    • Under Sec 80DD
      Quantum of deduction: Rs.75,000 from his gross total income, irrespective of
      actual expenditure incurred/amount deposited. Rs.1,25,000, where such dependent
      is a person with severe disability.

      Dependent”. “Dependent” means—-
      (a) In the case of an individual, the spouse, children, parents, brothers and
      sisters of the individual or any of them.
      (b) In the case of a Hindu undivided family, a member of the Hindu
      undivided family,

      So, how u justify 10 or 100 members disable..?

      • Disable person means-

        In a HUF, dependent means a member of a family.

        A person who is dependent upon such individual or a HUF for maintenance or support.

        In the case of Individual, spouse, children, parents, brothers, sisters are dependent.

        Person with disability means a person having disability of not less than 40%.

        Who has not claimed any deduction under section 80U in relating previous year.

        Disability shall have meaning assigned to it in sec. 2(i) of the person with disabilities ACT, 1995.

  2. Political party need to file ROI if it’s gross receipts before claiming exemption u/s 13A exceeds 2.5 lakh. So maximum which can be converted is 2.5 lakh.

  3. Its not possible in my view

    Recently new law was passed which allowed to donate money in political party’s bank accounts unlimited time but an amendment was made later on which only allowed money to be donated in new currency. Old currency can’t be donated in these accounts

  4. Even if you get back all your money after floating the party! In case it’s routed through bank then does it not attract tax as it would be current year income for the person getting money from party?

  5. According to my info, Fee required to register potical party is Rs. 1000 not Rs.1000. Bcz to register potical party you have to deposite Rs. 10000 Demand Draft .

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