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14 Valid Ways to Convert Black Money to White

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Converting black money to white

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,

  1. Charity donations

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.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. Advance payments

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.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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

  1. 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.

  1. Expensive holidays

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.

Disclaimer –

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.

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What Makes The Discount Brokers The Best?

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Traditional brokers of India have been beautifully outperformed by the storming brokerage plans and services offered by the discount brokers. This concept was introduced with the intention of increasing the numbers of traders and investors in the Indian stock market and the brokers have won in the effort too. The numbers of investors and traders are increasing at a tremendous rate to exploit the unlimited profit-making potential of the stock market. It is nothing but the ever-rising client volume of the discount brokers that help them to provide the services at unbeatable charges.

Most of the services come for free of cost

Recent reports state that most of the discount brokers fail to provide zero brokerage plans that they claim to provide. There are few discount brokers who provide free account opening and zero brokerage plans for the traders and most of the services come at free of cost. This is what the service that you should expect from Best Discount Brokers in India. Now everyone has the opportunity to make the investment in different financial products in the stock market to try the luck. There is no such bad time and good time stock market when you are at the service of an experienced broker. So never wait for long to make the investment.

The name says all about it

Discount brokers. Yes, the name says all about it. As the name suggests, discount brokers are the brokers in the stock market to provide the services at discounted or what called rock-bottom rates when compared with another type of brokers. Countless people open the demat and trading account with a reputed discount broker in the country to make a sound investment in the market to enjoy assured returns. Zero brokerage plan help you trade for free of cost in almost all of the platform including NSE, BSE, NCDEX, MCX, F&O etc.

Convenient platform for online stock trading

Though discount brokers don’t provide financial advisory like other types of brokers, they provide a convenient and better platform for online stock trading. This helps you access the account at any time you wish without any of the restrictions. The brokers don’t charge hefty amount as account maintenance and other related charges. Online platforms are well maintained to engage in easy and comfortable trades. Discount brokers also provide phone trade services to help the customers in executing the trade on the go at the expense of a phone call.

Compare and select

As said above not all the discount brokers provide zero brokerage plan and free services as they claim. There can come some hidden charges and upfront rates when calculated for monthly, yearly or lifetime basis bring a lump sum amount that can diminish the value of the trade. Hence select the Best Discount Brokers in India who really provide lifetime free account and zero brokerage plans to increase the value of trade and to maintain the accounts and online platform at rock bottom service charges.

Stock market provides countless opportunities to make a good income with low-level investment and trading cost. Make use of it with the help of one of the best discount brokers of the country.

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Choice of a discount brokerage firm

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If you are familiar with the modus operandi of the financial market, and are able to carry out your financial decisions at an independent level, opt for a discount brokerage firms to carry out all activities on your behalf. This type of brokerage firm is different from a full service firm. They roll out limited services and it is cost effective at the same time. But there are not going to simply carry out transactions on behalf of the client. Limited amount of services are offered at price. To sum it up discount brokerage is someone who can make their own decisions on what stock to buy and sell without the help of a broker.

Do explore the vast array of discount brokers that are available in the market. It could be difficult to come across one that matches your requirements. The choice of the right one assumes a lot of importance as a small difference could make a lot of difference in terms of commission, fees etc.  Do explore the following major pointers before you go on to make a decision

  • The decision has to be based solely in the manner by which you intend to trade. Say for example if you are a day trader you need to ensure that the brokerage firm provides you with maximum intraday speed. There is access to day time trading software so as to analyse the trends, figures and then arrive at a decision. If you happen to be a swing trader you need to have relevant tools for technical analysis. This would help you come across stocks that is going to provide you with short term momentum
  • Once you are a trader it does not make sense to limit your activities to a single discount brokerage firm. The reason being one single trader would not be able to provide services on all aspects of trading. There are some firms who provide option trading, but do not have the facility of option 2 quotes. The successful traders are the ones who go on to hire a couple of discount brokerage firms.
  • The main advantage of choosing a discount broker or a full time broker is that you can save considerably on the amount of commission as well as fees. As saving does appear to be part of the investment portfolio, customers would need to figure out the charges of the brokerage firms and what are the rates a discount brokerage firm is charging. A comparative study would provide more inputs on the same. Do observe whether the firm does not have any hidden fees as these extra charges can push up the charges considerably and dent your profits.
  • Do check out whether the firm has relevant experience and it is properly licensed with certifications along with the relevant training
  • Check of the stock forums on the internet. Discuss with your friends or relatives about the firms they have gone on to conduct trading it is better to stick to firms where you get referrals.

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Don’t Get Carried Away With Their Services

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The traditional or full-service brokers act in the same manner as their name signifies. Their main aim is to proffer a lot of services for the investors who get their accounts opened with them. As you get your account opened at any brokerage house, they allocate a representative to your account. This representative generally holds a securities license which implies that the representative has got registration in the BSE or NSE or SEBI and is educated enough regarding stocks specifically and strategies of investment generally.

You will come across a lot of the traditional brokers in the stock market. Certainly, all brokers in the present times possess full-featured websites so that to impart more information concerning their services. It is better to obtain as much information as possible prior to opening your account. Necessarily it is not needed to go to some specific stockbroker, but if you hire Top 10 stock brokers in India, it will be in your great interest.

Stockbrokers are capable of doing for you

Your account rep is in charge of helping you, replying queries concerning the account and also the securities found in the portfolio and executing your sell and purchase orders. Below are enumerated some things that the traditional broker can complete for you.

Proffer recommendations and guidance

The biggest difference amid the discount brokers and the traditional brokers is the individual attention you get from the account advisor. It is necessary for you to be in the priority list of your traditional broker, and you are needed to divulge a great deal of information regarding your financial objectives and finances. The account advisor is at all times by your side to offer advice concerning funds and stocks that are with any luck conducive to your needs.

Proffer access to research

The traditional brokers are capable of offering you access to make use of their department of investment research that may provide you with deep information and the analytical idea of a specific company.

Aid you obtain your investment aims

Any better account rep tries to know about your financial aims, and you and afterwards imparts suggestions and replies your queries regarding how a particular strategy and investment may assist you to complete your money-spinning objectives.

They can take investment decisions for you 

A number of the investors are inclined not to be disturbed at the time of taking decisions about investment. The traditional brokers may really take decisions on your behalf for the account only when you authorise them. It is known as the discretionary account. This service tends to be alright, but make definite that the brokers clarify their preferences to you.

You look out for

Since the traditional brokers, through their apparently vast support, are capable of rendering life very much effortless for any investor, you are required to take note of several points to avert problems:

In actuality, the account advisors and brokers are a salesperson. It does not matter in any way how fine their behaviour is with you; they are salaried depending on their capacity to fetch returns for their brokerage firm.

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