Is it possible.
This query is : Resolved
04 September 2011
Let's say they have a black money of 1 lakh. They purchase a policy of 1 lakh single premium. Now LIC doesn't care or check about the source of the income. So they issue the policy bond. Now the person can sleep at ease because if Income Tax officials do a raid, they won't find the money. However, there is the problem of the policy bond. That can be found by the IT officials. Solution is simple and ingenious. The businessman would take a loan of a small amount (say, a hundred rupees) from LIC. Now, LIC would take the policy bond as a collateral. So in effect, LIC takes care of the safe-keeping of the policy document. The tenure of the loan will usually match the tenure of the LIC policy. So at the end of term (say, 5 years), the businessman gets back the bond which he then uses to liquidate the original investment. Now this money is white as it is the maturity proceeds of an insurance policy. Since IT officials can only dig through three years of paper, they cannot question on the source of funds of the insurance premium. Neat, isn't it ?
Here I am - suggesting simple things like term insurance and mutual funds. So naive !!
Here I am - suggesting simple things like term insurance and mutual funds. So naive !!
04 September 2011
Please don't watch many english and hindi movies. In cinema everything is possible but in real life everything is not possible.
Lic will give you policy against cash. But loan only in the form cheque. The IT department will see first, your bank statement
Lic will give you policy against cash. But loan only in the form cheque. The IT department will see first, your bank statement
05 September 2011
Agree with Mr. Shetty....
Plesae note: - The IT officials can easily find the Loan sanctioning letter issued by LIC in which they would hv mention the details of collateral security....
One more thing... I have faced a search & seizure case in my previous co. (One of the biggest in eastern region of India) where they have collected papers of last 7 years and demanded on the same.
Plesae note: - The IT officials can easily find the Loan sanctioning letter issued by LIC in which they would hv mention the details of collateral security....
One more thing... I have faced a search & seizure case in my previous co. (One of the biggest in eastern region of India) where they have collected papers of last 7 years and demanded on the same.
06 September 2011
Mr. Sanjay
It is nice planning but you are not aware that up to 10 years Income Tax Department can ask you to submit details if it is a raid case.
So this will not work
It is nice planning but you are not aware that up to 10 years Income Tax Department can ask you to submit details if it is a raid case.
So this will not work
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