PM Modi’s sudden ban on 500/1000 Rs. notes have added a huge burden on everyone. While on one side it is considered as an excellent move to curb the creation and flow of black money, on the other hand, the ground situation has gone from bad to worse. There have also been reports of a 1-year old child losing his life because the ambulance refused to take Rs 500 denomination.
Amidst all the chaos, Indians are finding ways to become tax dodgers, as government promises to fix India’s black money problem once and for all. As the poor and middle-class owner struggle, the black money holders are finding ways and means to convert it into white.
Here are 5 ways through which Indians are averting the demonetization drive by making good use of the unconverted cash.
Making A Charity Donation:
Donating to charity is a great way to be charitable and save your money on taxes at the same time. It is one of the most extensively used techniques accepted by people to convert their black money into white. These Monetary donations are deducted on income taxes, further reducing your taxable income.
Booking Tickets For Change :
Railway tickets are not something which comes under the notice of tax authorities. Hence, there has been a surge in a number of people booking waitlisted tickets in a higher class to use old notes of Rs. 500 and 1000. The whole idea was to get the tickets cancelled and get back the refund in cash. However, the Western Railway has recently announced that the refunds exceeding Rs.10,000 will be directly credited to bank accounts.
Paying Hospital Bill:
Another popular way used by people to convert black money to white is by paying medical bills and buying medicines.People are paying health care bills with old currency and reimbursing them later to get medical claims from insurance companies. The government has extended the date of accepting the old series of Rs. 500 and Rs.1000 till November 24th at government hospitals.
Giving Out Cash As Loan:
As the Government has said the deposits up to 2.5 lakh won’t be questioned, many people are turning to private lenders by giving out lost cost loans to the poor. The only effort they are making to achieve results is to convince the loan taker that they can exchange old currency anytime. Also, they are earning a lot of profit without attracting the attention from the income tax department.
Gift For Employees:
Many Employers are rewarding their employees by paying bonus and salaries in advance. By paying each employee less than 2.5 lakh salary in advance, the companies do not face any kind of inquiry from the income tax department. Also,through this way they get the old currency off their hands easily.