top of page
Writer's pictureCA Umang Jain

What is Black money (Kachha)? And how to convert it to White(Pakka)?

Updated: Feb 28, 2023

Haha, in this blog we are not giving any solution on how to convert black money to white, rather we will just be discussing on what is Black money?, Why there is a lot of black money in India and no black money in Dubai?


What is Black Money?
What is Black Money?

In simple terms, to make you understand what black money is, we can say, that amount of money which is not offered to taxation in that country.


Now, you would be thinking that if there were no tax laws in India, so there would not be any black money or white money? Yes you are correct. Let’s hypothetically say from today we remove the Income Tax Act from India, so from now there is no Black money no white money, i.e. all the monies are same.


This is the reason why Dubai doesn’t have black money as there are no tax laws.


In India, people try to avoid taxes by showing less income and hence the undisclosed part of the income form part of the black money.


Now the question on how to convert black money to white is by paying taxes on the same

For more details consult your Chartered Accountant.


We hope the above blog was helpful in enhancing your knowledge on the matter. In case of any queries feel free to get in touch with our team of experts.


Quote of the day:


“Do what you can, where you are, with what you have.“


- Teddy Roosevelt


Regards

CA Umang Jain

+91-96323-32850

umang@caumang.com


©2023 by caumang.com


314 views0 comments

Comentarios


bottom of page