Inputs Sought - Conversion of Black to White Money

Today, we would like to seek your inputs on the various ways in which black money in India is converted into white money (in India or abroad). With these inputs, we would like our circle to understand this menace and then propose solutions (in a seperate post) followed by submission to the investigation agencies and Ministry of Finance so such gaps can be closed.

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We look forward to your inputs!
Transparency International India more  

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I fully agree with Palaniji. more  
Any transaction above Rs 200/- should be done only by electronic mode (at least in all major cities) linked with either PAN or Adhaar card, so that generation of black money is minimized. more  
It is difficult for a common man having no black money to describe the ways of converting their black money into white. The common man can't even imagine as to how the politicians and other people earning through various scams manage their huge illegal wealth deceiving the tax departments and other intelligence departments.

Often we read in news papers that the anti corruption people raided the residence of such & such (most government officials) and seized huge unaccounted money in cash from their residence/bank lockers. During last weak Rs. 25 crore was seized from the residence of one corporation official in Bali(WB) in cash. The money was found kept in every nooks & corners of the residence including the toilets. This may be one of the ways to keep the black money. This officer could be caught only because of his unending greed. Had he drawn a full stop to his immoral act and satisfied himself with the huge money he already accumulated, he and his family members would have lead a lavish life for the remaining period of their lives.

Few of my presumptions on the issue are furnished:

1. Politicians spend major parts of their illegal money in fighting elections as their is no system yet developed to estimate the actual amount of expenses incurred;
2. Some agricultural land is purchased to become an agriculturist and black money is shown as income from agriculture, which does not attract any kind of tax including income tax;
3. Houses/landed properties are purchased in fictitious names, in the name of children, relatives and even in the names of their servants;
4. Money is kept in banks in fictitious names;
5. Factory/mill owners/business men and industrialists plough back their black money into their business without reflecting such money in their balance sheets and maintain two types of accounts;
6. The industrialists invest black money in accumulating raw materials, which are not reflecting in their books of accounts. They maintain two types of accounts, one is for their records and the other for the tax departments;
7. The builders and real estate developers invest their black money into their next projects;
8. Black money is also spent in living a luxurious life style, internal decoration of their residential houses, etc.. Their houses are flooded with costly and latest gazettes;
9. Black money is remitted abroad through 'hawala';
10. Black money is also used for terrorist activities and creating disturbances;
11. Gold and other precious metals & stones are purchased using black money;
12. Affluent money is spent in constructing their residential & business houses;
13. Huge black money is invested in schools/colleges and hospitals, which give very good returns in white.

I would like to mention here that the CAs are the master minds in converting black money into white. more  
Is it not common knowledge that the lion's share of black money in India is generated, managed at home and abroad and utilised by the political class. All the scam moneys, a share of all bribes, and more than these, undiscovered corruption yields remain black and are circulated as black.. ie. most of them. In India black money is 'the power' because of the political system they chose for us in which vote is a commodity - in parties, governing structures, elections and elected bodies.
The solution for this knotty situation is not so obvious to the common man nor does it occur to official and professional thinkers .. Because the fault lies with some thing we almost worship! Still, it is better we start thinking about it as early as possible. I am not suggesting to abandon democracy. We need to embrace true democracy. The political cast should return power to the people!
CKPNair.
22/8/'15

Transparency Intl India <support@localcirclesmail.com> wrote:

> more  
Black money can be converted to white very officially and legally. KVP which was withdrawn as it was used to convert black money to white is revived.

You can go to Post offices with black money even without PAN buy Kisan Vikas Patra of any amount and you get double the amount in 8 years.

Full details go to link below:-

http://www.thehindubusinessline.com/banking/no-pan-requirement-for-investment-in-kisan-vikas-patra/article6610793.ece more  
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