12 Best ways to convert black money to white money

Are you wondering how to convert black money to white?

Well, there are quite a few ways many people are doing that almost every day. This is common mostly with businesses where the profits are not shown exactly the way they are.

You might already know what black money is.

It is that money which you do not show in your earnings. As a result, there is no record for black money, no audit, and no accountability.

Therefore, it cannot be estimated how black money exists in the country, but a lot of it is in the form of gold, real estate, precious metals and the like.

Moreover, black money is present because of the unrealistic tax laws, inflation, control policy and lots of other reasons.

But you need not go into the gory details. All you need to understand are the safe ways to convert black money to white money.

The tax structure poses a problem for middle-class families. Only a very small percentage of the population actually files income tax returns and an even smaller percentage pays the tax.

People obviously want to convert black money to white. There are illegal ways to do that. But there are a few legal ways too.

How would you convert black money to white money?

Let us look at some of the best ways to convert black money to white money.

The following are some of the most common ways how you can convert your black money into white money without creating any red flags on the way.

1. Show the income as agricultural income

Firstly, one of the most cliche ways to do this is to show that your income is solely based on agricultural mediums.

Since most farmers do not get good profits by selling their produce, the government has kept agricultural income tax-free.

Therefore, if you would like to show your income as agricultural, you would need to possess agricultural land.

Show the income as agricultural income

Also, the land should be used as a nursery or plantation. Hence, only possessing the land is not enough for you.

You would have to show that you are conducting agricultural activities on the land.

If you do not already possess a piece of farming land, you can take the land on lease.

You can then show that the money you have earned as income from farming on that land.

However, before you can do that, there are several conditions that you would need to clarify if you want agricultural income.

2. You can use the money to invest

One of the best ways is to invest the black money.


Investments can be done in lots of different ways.

  • You can purchase an insurance policy and pay the premium in cash.

The first premium is mostly paid through cheque and the rest is done in cash.

  • Moreover, you can invest and save your money in PPF accounts, fixed deposits, and tax saving mutual funds.

These are some of the safest ways to secure your money. There are lots of different ways of converting black money into white if you are considering investments.

  • Further, you can even buy gold from a local shop where you will get an invoice.

You should keep the invoice and sell the gold back after a certain amount of time.

In this way, you would get an invoice and you can sell the gold back after a certain time. In this way, you will get an invoice and get your money back as well.

However, you cannot buy gold from a reputed store as they might insist you to pay through cheque.

  • In addition, you can even buy some antiques, artwork or painting.

3. Get gifted by a friend or relative

Another popular method that you can do is to get a gift from a friend or relative.

get a gift from a friend or relative

Firstly it is certainly one of the popular methods for doing so. Secondly in this way you can make money from them and hand him the same amount in cash.

Moreover, it can be done on any occasion of your choosing – marriage, birthdays, marriage anniversaries or Diwali.

In addition, you would need to ensure that your friend or family has that amount in their bank account.

Gifts that are received from relatives and friends are exempted from taxes.

You should, however, prepare a gift deed of the transaction which would serve as the proof of receipt of the gift.

4. A bogus loan entry to convert black money

Another way you can convert black money into white money is by showing a bogus loan entry.

showing a bogus loan entry

Firstly, this is a way where you can give black money to a relative or a friend and take a cheque from them. There is also another variant to this method.

Secondly, you can give people a repayment of the old loan by giving back white money in the form of a cheque.

Certainly this is another way to get rid of your black money and convert it into white.

5. Forming trust and doing some charity

A very popular way of converting black money to white is by formulating a trust for a social cause.

donated to this trust as a charity

People often make executive bodies of their known associates, mostly illiterate people.

Black money is donated to this trust as a charity so that the black money can be converted into white.

Though it is charity on paper, it is not really so off the shelf.

The charity takes donations in the form of cash.

The money that is obtained by the trust is then ploughed back to the member who is bringing the black money.

This is often in the form of a loan and is never paid back. This is probably one of the oldest tricks in the book.

6. Using professional money laundering firms

Before you make your money white, you need to know why black money should be converted to white money.

Using professional money laundering firms

Since black money is not taxed, you are not the official owner of the money and you might be jailed if you are caught using it.

So, converting it into white money is one of the best ways to take care of this problem.

The money-laundering firms are run by chartered accountants and they are experts in evading the taxman. These firms use businesses like highway transport that run completely on cash.

The ‘cash-in-hand’ firms complete the needs of companies who are in need of short-term funds and have lots of black money to keep.

It is not very difficult for them to show back-dated transactions in the current fiscal.

These firms are experts in what they do and you can consider them for converting your black money to white.

7. Depositing cash in the accounts of your family members

If you want to do this, you need to have a savings bank account for every family member – be it a friend, family member or a trusted relative.

Depositing cash in the accounts of your family members

You would need to deposit cash in the accounts of your family members.

You would need to ensure that you deposit small amounts of money in the accounts.

If you are depositing small amounts, you would not pop up on the radar of the tax professionals.

You can later use this amount as a gift from them.

With the help of your family members, you can easily convert a lot of black money into cash.

The small amounts may seem trivial but you can do this for each individual.

This money can be used for future investments in different sectors.

You can buy stocks, invest them in mutual funds and buy gold which will grow legally later on.

8. Back-dated fixed deposits in credit societies and co-operative banks

A lot of such institutions do the work manually and there are reports that they have issued fixed deposit receipts in backdate.

The owners of black money can get various fixed deposits in the names of others in back dates and make their money white in due course.

They would need to pay a cut to those in whose name they are depositing the money.

Back-dated fixed deposits in non-banking financial institutions

You can even find some non-banking financial institutions who can make your money white in a similar way.

These institutions have a very good way of money laundering.

The level of regulations varies in different states.

9. Buy real estate to convert black money to white

This is another one of the known and popular ways to convert black money to white.

This is one of the sectors where a lot of black money is passed on every day.

People are using real estate deals to convert their black money to white almost every single day.

A lot of people would do a fake deal and exchange money.

Then they would cancel these deals due to non-payment of money from the other parties. This way of converting black money is all too popular now.

purchase property in the name of your adult children

In this way, you can purchase property in the name of your adult children or spouse.

Once you have purchased a real estate in their names, you can show rent income from them.

The purchase price can be adjusted according to the need of the situation.

10. Giving cash loans to people

Another very creative way to launder money is to give loans to poor people, whose bank transactions would not arouse suspicion.

 Give loans to poor people

You can give them out loans in cash and allow them to enjoy interest-free tenures.

This will make the offers much more appreciable compared to what is offered by the banks.

The upside is that you will get money converted into white without arousing any suspicion.

When you take the money back from them, you can get it in terms of a bank cheque.

This will get you a receipt for the money you get.

11. Showing cash income from profession

showing the income in cash

A very popular way of converting black money into white is by showing the income in cash.

Income from the commission, professional fees, and tuition is shown as cash by a lot of taxpayers.

However, it is a very cunning way of converting black money into white.

12. Declare the black money to the authorities

If you are wondering how to legally convert black money to white, then there is only one.

Above all, Among the ethical ways to convert black money into white money, this is the one that you should consider doing.

In this way, you can avoid any penalties that the tax officials charge you with.

Declare the black money to the authorities

Most people are trying to evade paying taxes and if you show your black money out of your own volition and not through pressure, this would be taken as a good sign.

As a result, your penalties might even be excused.


To sum up, you should declare your black money to the tax authorities, pay taxes and convert them into white money.

Otherwise, you might end up paying as much as 200% of the original amount, which can be a very sad state of affairs.

Moreover, if you have a business, you can even consider paying your employees an advance salary of few months and deposit the cash in their accounts.

With all that said, you should not withdraw cash from your bank accounts if you are considering to make your black money go away.

In short, you should pay with cash, whenever and wherever possible.

This would save you the trouble of converting your black money to white only for the sake of spending them on household ventures again.

You should take the tax laws very seriously and be aware of the penalties that you might face if you are ever caught dealing illegally.

Moreover, you might not only face penalties from the authorities but some serious consequences, including a prison sentence.

Most importantly, the tax laws have become very serious in recent days and authorities are keeping a close eye on everyone, thanks to the digital edge.

Therefore, if you involve yourself in some activity that raises a red flag, you might be called upon to explain your income.

So, you can consider using these methods for converting your black money to white.

If you think you would not want to further jeopardize the economy of your country and be a law-abiding and tax-paying citizen, you can declare your black money and pay the taxes.

We don’t advocate readers to follow any of those ways for black cash conversion. this text is simply for exposing loopholes of our system. So, that run and therefore the government will take acceptable action by formulating strict rules to get rid of black cash from the Asian nation. we tend to square measure against black cash and black cash generation concepts.

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