Converting black money to white, how? If you are wondering how people are transforming their black money to whit and bring back to main system then this article will help you to understand the various ways people are following.

With the recent havoc caused by the demonetization strategy, there have been people finding multiple ways to be able to convert the black money to white money, for they have restrictions with depositing huge sums.

Remember, the purpose of this article is simply to share the information about what people are doing to convert their black money. I am not at all encouraging these practices, rather if you notice any one following these methods then you can send email on This email id will be monitored by special cell and immediate action will be taken on information sent by you.

Methods to Convert Black Money to White

So, let’s explore few of the popular ways people are converting their black money to white after demonetization. Actually these practices are growing in our society and to stop such people our PMO has triggered the demonetization step. Let’s explore the ways to convert black money to white in 2017.

False Loan Entry

One of the most popular methods that people put to use is by depositing money into a friend or relatives account, and taking a cheque in return. This leads to the black money being converted into white money. Many a times, people make the repayment by simply giving back the cheque.

Creating a Trusts or Running a Charity

This is yet another of the most adopted method to convert white money to black money. What people do here is they create trusts and formal bodies in the name of a social cause. However, the internal functioning is totally different as a matter of fact, because the body comprises of people known to the creator or more than often, has people at the lower levels.

On paper, the entire money transfer looks like charity and donations, but for real, it is nothing but black money being put to use for conversion.

Showing income as Agriculture income

For professions where salary is in the form of cash and not by cheque or money transfer, people can easily put their black money to work. They can either show it as an income of their side or part business, which can be anything ranging from teaching to other professions.

Investment through cash payment

You can make investments at multiple places and one such idea could be to invest into insurance policies. For example, your premium could be Rs. 30,000 to be paid quarterly. Here, what people do is pay the first premium by cheque and the remaining ones by cash; thereby converting the black money into white money. Yet another of popular and known ways!

Black money as gift to relatives, family or friend

Many people are well versed with this method of converting the black money into white money. When you get the black from your relatives as a gift in your account, it is treated as white money. The entire thing is quite simple, for all that happens here is if the relative has the same amount of white money that you have as black money, the relative can give you a cheque as gift and then you can give the black money to them in turn.
The entire thing makes the conversion simple and free of errors.

Real Estate Transactions, registration

Real estate is yet another sector where the maximum amount of black money keeps rotating. Many people make use of real estate deals to be able to convert the black money to white money. There have been various instances where people make fake deals and they simply make the entire exchange and lock the deal; later on however, the deals are cancelled because of non-payment or non-clearance of the same.

Why People Convert Black Money To White?

I think the answer is very simple indeed. People don’t realize the importance paying income tax to Govt and they try their level best to avoid paying income tax. Another reason is that there various loopholes in our taxation system which allows people to avoid payment of income tax, which accumulate the amount of Black Money.

These were certain ways by which people do manage to convert their black money into white money. However, these ways shouldn’t be entertained as these are nothing but ways by which you are fooling the government by non payment of tax, which is actually not ethical being a citizen of India.

These are actually loopholes in the system and they often end up creating havoc instead of solving the problems. Therefore, it is suggested that people don’t resort to such methods and rather declare their black money as black money rather than trying wrong ways to get rid of it.

Disclaimer: The purpose of this article is not to encourage about converting black money to white. Rather to educate people about the various ways to convert black money to white money so that you can be aware and stop someone near you to do the same. You can also report to IT department is someone is trying to engage in this practice by sending a mail to