Converting black money to white
With the sudden governmental actions taken to curb black money circulation, many big shots of the country are facing the pressures of converting all illegally acquired wealth to white cash. Before proceeding further, it is important to understand what exactly black money is. Black money in the Indian economy refers to the money that is earned in the black market, that is, the money on which the individual does not pay taxes to the government. This is illegal and punishable under the law. This is perhaps why the black money recipients tend to hide such facts and spend this money in cash instead of other forms of banking transactions.
Though absolutely not advisable, there are certain loopholes in our economic system that makes it possible for black money to be converted to white money. These are perhaps the opportunities that black money recipients might use currently in order to overcome the government regulations against illegal money. Some commonly used practices include,
With excess money to be converted from black to white in hand, most people would prefer donating lavishly to orphanages, old age homes and other charitable organizations. The amount is generally paid in cash form, without any receipt requirement. Some organizations may also take direct deposits to their organizations account as well. This helps the person clear off black money as well earn praises from society for helping the needy.
Give it to the needy
This is perhaps the easiest way to get rid of black money. Passing on some money to someone in need or someone who is financially not sound enough can help the person live a better life and the donating person some peace of mind.
Invest in expensive valuable
With lots of hard cash in hand, it is common for people to buy high value goods to convert the black money to white. This may include buying a new property, land or flat, a new car or any other expensive good. The buyer generally requests for a back dated bill from the seller to cover up the ploy.
Set up a new start up
This is the best time to give wings to new ideas in the form of new business ventures. Setting a new company requires ample investments. This allows black money to be utilized fruitfully and also establish a start up company to avoid the eyes of the tax department.
Loan out to others on low interest rates
Another easy way to convert black money to white is passing on some amount as a loan to others while charging a really low interest rate of may be 1-2 %. This offer is lucrative enough for others to take up the loan and a way out for black money recipients during this period of crisis.
Invest into various sectors of finance
One can easily invest large amounts on various sectors of finance. They can buy new insurance policies of higher values and invest in mutual funds. This investment makes it possible for black money to be utilized profitably.
Businessmen can pass on large amounts of black money in the form of advance salary payments to employees. Appraisals and bonus paid to employees keep the staff happy and satisfied while the employer can get away without paying taxes on large illegally acquired cash.
Cough up taxes
The recipient can pay up taxes on some portions of the acquired black money in order to avoid the eyes of the Income Tax department in terms of the rest of the money, which can be an atrocious amount for the government officials.
Fill up on fuel
With fuel stations taking old notes and cars always requiring fuel, black money recipients can stack up on fuel like petrol and diesel in bulk quantities. Though this is a risky option, with the law over their heads, black money recipients are more likely to take up the risk in the current situation.
Income as Agriculture Income
Another popular way of converting black money to white is by showing the income amount as agriculture income. This is possible only when the person possess any land. If not, then the primary task is to acquire large areas of land. This land is then used for agriculture purposes like small scale plantations, gardening, farming and setting up nurseries.
Cash Income from Profession
One of the most popular options of converting black money to white is simply showing the cash income as payment from profession. This can be from professional income from tuition to students, and professional fees or commission for education related issues.
Stacking on liquor
Big businessmen can plan of stacking large quantities of highly expensive liquor and other alcoholic drinks. This can be shown as required for personal parties and other events. This helps spend the black money in the form of white cash
Lavish shopping soiree
Big large amounts of liquid cash in hand, though black money, people can easily spend up on lavish shopping trips to the malls. Purchasing expensive shoes, clothes, household items, accessories, make up items and other home products can help get rid of illegal funds.
One can relax and unwind with family and friends on a vacation to exotic locations. The holiday reservations can be paid using the black money cash fund. This way one gets to enjoy, have a nice time and also be stress-free in terms of tax-free money.
These are probably only few of the possible ways to convert black money to white. Black money recipients would probably be thinking of several other ways to overcome government regulations and get away with illegal money.
We don’t recommend readers to follow any of these methods for black money conversion. This article is just for exposing loop holes of our system. So, that RBI and the government can take appropriate action by formulating strict rules to remove black money from India. We are against black money and black money generation ideas.
If we have missed any other methods which people use to convert their black money into white money we’ll request you to share it in comment sec.
3 Key Factors Entrepreneurs Need to Consider When Preparing a Financial Plan
Arnon Dror is a prominent financial expert who many people look up to for inspiration. These individuals aspire to pursue a successful career in the world of international business and finance. They want to emulate his achievements. This Hebrew MBA graduate has a unique distinction of discharging the office of Vice-President. However, Arnon Dror has been able to occupy this position in more than one company. These organizations include Creo Americas, Scitex, Presstek, Creo Inc., Kodak, and Xerox. The officials of such organizations admit he is responsible for their concern’s transformation into profitable entities. They even say he’s expertise extend to many diverse fields. These include cash flow management, strategic planning, internal controls, ERP integration, corporate mergers, business negotiations, and taxation.
Arnon Dror – What should entrepreneurs include in a viable financial plan?
This prominent expert says entrepreneurs probably know the importance of executing a viable financial plan. Such a scheme is essential to the success of their businesses in the marketplace. Even recent research in this field indicates a significant fact. Businessmen who implement one are in a better position to gain a competitive edge. This is something which many proprietors can’t afford to overlook at any costs. However, when it comes to formulating such a document, the face a serious dilemma. They don’t know what to include in such a document. Fortunately, this professional explains such a plan should contain the following 3 key aspects:
- Sales forecast
Entrepreneurs should estimate the sales revenues they are likely to earn for a specific period. This time-frame could be on a monthly, quarterly, or yearly basis. They may come up with the necessary figures after analyzing the concern’s past performance. They should also look for certain patterns which can help them understand their clients’ purchasing behavior. This is necessary for formulating and implementing marketing strategies for their target audience.
- Expense prediction
Proprietors need to record all the expenses they are going to incur while operating their businesses. These could be in the form of taxes, utility bills, payroll, and rent for office premises. These businessmen need to pay for the costs they associate with production, distribution, warehousing, and marketing. They should also make estimates of the amounts they need chalk out in special circumstances. These include an increase in tax rates, a rise in minimum wages or unforeseen maintenance. It’s also prudent on the part of these proprietors to prepare a budget for this purpose.
- Cash flow projections
Proprietors need to know how much money they’ll have in their cash registers after meeting their expenses. This helps them to identify potential cash crunch problems they are likely to face. They can then take the necessary steps to overcome the problem before it blows out of proportions. This ensures their organization won’t become bankrupt. These businessmen should estimate how long it takes their clients to clear their dues after issuing invoices. They should then make arrangements to make ends meet in the interim period.
Arnon Dror says to prepare a financial plan is a necessity for entrepreneurs rather than a luxury. It provides them with a road map on how to manage their money matters prudently. While preparing such a scheme they need to ensure it contains the above 3 important aspects. Only then can these businessmen get the type of results they are looking for.
Self Storage to the Rescue
Storage has always been a problem for many. That is why many individuals must promote the things they really like or must live in small areas packed with things. Some do not have a spot to shop vehicles when they are away on a vacation. Other individuals like boating or suffering from a journey in an RV, but cannot get one of their own due to absence of storage room. Self-storage places an end to all these individuals’ sorrows.
Self-storages are used by different individuals for saving different things. These self-storageunits are available in many dimensions and as per the importance, they can be leased out. The period of rental can be for a couple of several weeks to a few years based on the need. These storage units near me locations are usually situated in easily accessible locations in places.
Due to their popular requirement, these storage functions are now becoming savvier both wide and technological innovation. They have state of the art technological innovation when it comes to their protection. For example, electronic hair, some of which are triggered by eye check out or finger marks, 24/7 protection through close routine electronic cameras for video monitoring and security techniques and heating and cooling. Atmosphere management is particularly significant for the clients.
This is because it helps to ensure that the products held in the self-storageunits are safe from corrosion, wetness and other providers that might damage the products. For example, a furnishings storage needs to be climate managed, especially from dangerous bacteria and keeps rats or rodents from infesting it. All this could damage the furnishings. In the same way, car storage, vessel storage and RV storage should be free from corrosion development and wetness as well. A location managed environment is thus a top concern for most clients.
Uses of Self Storage
Self-storage has numerous uses, hence their reputation these days. Some of these uses are mentioned below:
- Companies sometimes seek the services of self storage shop their information and essential records for which they do not have area in the office and yet cannot be damaged.
- People, who are often on the shift, choose to have their valuables in a self-storage, especially if they are stepping into an equipped residence. These individuals also shop their vehicles in a self-storage until they are back around. They feel it is far better keeping the car in a self-storage due to the improved protection measures that they do not have in their own garage area storage.
- Many individuals like to own vessels and RVs but cannot due to absence of room. Therefore, they turn to self-storage to shop these items and luxuriate in their ownership and use them whenever they please.
- Many individuals acquire furnishings that they cannot put in their own houses due to absence of room. Instead of promoting them, many shops them in self-storageunits until they shift into a house where they can be placed.
Whatever the reason may be for storage, clients choose to keep their valuables in a position that guarantees protection from deterioration. Hence, the savvier the self-storage position, the better is its chance to catch clients.
Top three ELSS scheme that you can opt for
ELSS is considered as the best way to save a good amount of tax without breaking any rule. However, if you are new to investment, and aren’t aware of the different aspects of finding the best investment scheme, then you would have no other choice to invest in the bond where your officemates and friends are investing it.
However, as an investor, you should know that the investing needs of every single investor are different. Some users invest their money to save a specific amount from their salary, whereas some invest to save the taxes. And if you find yourself in the category of taxi saving personnel, then you should look for the ELSS instead of investing money on mutual funds and other modes of investment.
In this article, we will focus on the three best ELSS scheme that are gaining enormous popularity among those investors who are willing to get the best returns along with reliable tax savings. So, be with us to know more about the best options that are currently available to you to invest.
Axis Long Term Equity Fund
Axis long term Equity find is an ideal fund to invest for those buyers who were after a long term investment fund that can help them grow money for a specific goal and also can help them get the tax benefits under 80c. With a perfect blend of investing in the large and mid caps, this equity funds from Axis is one of the best performing funds in recent years.
So, if you were looking for a reliable and efficient tax saver that provides great results, you should once have a look at the Axis Long term Equity Fund
ABSL Tax Relief ’96-Direct
For the investors who are looking for a fund that has been in the market from quite a long time and has performed relatively better than most of the other similar funds in the category. The fund is from the Aditya Birla group, which is known to have a good team of market experts who will assure that your money is in safe hands and you will get the best benefits as per the market trends.
By investing your money to it, you can be assured to get the best returns and the best tax benefits. So, go for it, if you were after reliable results.
Mirae Asset Tax Saver Direct
Mirae Asset Tax Saver Direct is one of the best funds to go with if you were looking for the brilliant returns. The fund has grown relatively better than the others in the past three years and brilliantly utilizes your money to the combination of large, mid and small caps that minimizes the risks and maximizes the returns.
If you were looking for a direct mutual fund app that can help you grow your wealth long term along with the tax savings, the Mirae Asset Tax Saver Direct would be an ideal choice for you.
So, these were the three best ELSS schemes that you can opt for. All of them have performed exceptionally well and have provided users with the best returns. So, choose one according to your preference or invest a little amount of all of them, as per the convenience.
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