How do people convert Black Money into White Money?

What is Black Money, How to convert Black money into White Money

This  is an informative article which intends to inform people about some of the methods adopted by people in India to conversion of Black Money.

This post does not encourage any person, communities, organization to use any of the below methods to convert Black Money into White Money.

Fake Sale to Jewellers

Go to a local Jewellers. Tell him the amount you want to convert into white money as cash. Jeweller will give you a cheque back for the same amount less 4%. Jeweller would give you a purchase bill to show that you have sold silver/gold to him. On the amount of the cheque when you file your return in year end you will have to pay no capital gain tax as Silver utensils are Personal effects and capital gain does not arise on sale of personal effects.

Formulation of Trust & doing Charity:

Popular way used by people to convert black money to white is by formulating trust for social cause. They make executive bodies of own people in trust sometimes illiterate people like driver cook etc. They donate black money to this trust as charity to convert black money. On paper it is charity but off the shelf it is conversion of black money to white.

Showing Cash Income from Profession:

Another popular way to convert black money to white is by showing income in cash. Income from tuition, professional fees or commission is shown as cash by many tax payers it is nothing but converting black money in white.

By Real Estate

Real estate is sector where majority of black money is parked. People use real estate deals to convert black money to white. It is observed that people do fake real estate deal exchange money and cancel these deals due to non-payment of money.

Depositing Black Money on name of Family members

Another popular method for converting black money to white is to open bank account on each and every individual family member. Deposit black money on the name of every family member to convert it in white.

By Declaring Black Money:

Best method for converting black money to white as per me is by declaring this money to IT authorities and paying tax on this money to convert it in white. There’s already enough economic chaos, why add to that?


  • I don’t recommend readers to follow any of these steps. I just want them to be aware regarding these false practices.
  • I trust that a tax planning should be done in such a way that it can stand the test of the legal battle of course subject to debates.