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Thursday, February 21, 2013

Black Money - Where to Look for Black Money in India?

One hears about a lot of black money flowing in India. If someone were to find out where it is hiding here are some places to look for black money:

Real Estate

Anytime one hears the phrase "you have to pay a premium" one can bet the premium is nothing but the black money asked by the seller. And who are these sellers? Mostly investors with loads of black money. Black money grows faster and fatter as compared to white money because these "investors" pay no tax on the black money - neither income tax nor capital gains tax. In fact it is really amazing that the term being used is "investor" rather than "tax violators".

Simply asking all builders to provide the names and contact details of those who have bought and sold a house before the physical possession is enough to nail these "tax violators". Most of such people would be ones with black money.

Wedding and Festivals

In many cases someone splurging loads and loads of cash on wedding, birthday parties, festivals is a good case to explore further. Chances are high that the money behind all of it would be black in color. When payments made for all such expenses are made in cash it is invariably a case of black money being used by the person making the payment. Not only that the payment accept in such cases stays in cash and gets spent further in cash, all of it remaining in black.

Simply asking all tentwallahs, banquet hall and lawn owners and restaurants organizing birthday parties the names and contact details of those who have used their services is enough to nail these "tax violators". Most of such people would be ones with black money.

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