Who does not want to earn money? All people want to earn money for a better living and comfortable life. Money gives strength as it is the means to get things that people want to have. Without money people, lack strength and confidence. The difference between the money you want and the money you earn is the root cause of the existence of black money. The money earned legally in a profession that has been decided by the management for a profile is known to be white money, but the money earned apart from what an employee or staff deserves from that profession or other profession illegally in the form of cash which has no records is termed as black money.
Many people run behind this excessive amount, apart from what they deserve, and to refrain from paying the tax on this amount they try investing in things that are not taxable and get this black money converted to white. People want to be rich ASAP and tend to indulge in this kind of earnings. People in London are not far from this, they try investing this amount in many ways to show its legality. They try investing in areas like
- Investment in gifts -People safeguard their un-counted money by presenting it as a gift to their family members like at weddings, birthdays, anniversaries and other special occasions. By this people try to escape from paying taxes. Diamonds are considered to be the best investment in London as they don’t occupy much space like other metals. Even a small diamond trinket can cost 4 to 5 times more than the other pieces of jewellery. This means diamonds in any form or any place may it be diamond necklace or buying wedding rings Hatton garden or from some other outlets cash can be a good investment. The small size ensures great storability and the diamond’s durable nature makes it the best investment that won’t go waste.
- Investments –Investments on mutual funds, insurancepremiums, savings in PPF accounts or fixed deposits. This way of tax saving is being used by people to safeguard their uncounted money from disclosure.
- Investments in real estate-People try owning real estate in their family member’s name to be safe. As this helps them in non-payment of income tax.
- Giving money to family members-To avoid paying tax on the uncounted money, accounts are being opened in the name of family members where they can deposit this money. People even try to give vague reasons to file returns on the low income of family members by managing their funds into their accounts.
- Income from the profession-Some inflow of cash is being shown as income related to their profession like if in an educational institute, being shown as tuition fees.
- Investments on the ornaments-People go to jewellers give cash and try getting receipts against the amount paid as their purchase of jewellery, where the jeweller gives them a draft for that cash. Some people opt for buying jewellery as a non-taxable investment. For example- Investing in diamond tennis bracelet, gold bracelets or platinum bracelet can help to get a receipt of that investment done which are non-taxable.