What is black money essay?

What is black money essay?

Black Money is the money on which income tax is not paid. This money is earned through corrupt practices and not declared fearing legal action. Black money is collected by corrupt officials, politicians, businessmen, criminals, smugglers and any other individual trying to evade taxation.

Which country have most black money?

As per data released by the Department of Industrial Policy and Promotion (DIPP), two of the topmost sources of the cumulative inflows from April 2000 to March 2011 are Mauritius (41.80 per cent, US$54.227 billions) and Singapore (9.17 per cent, US$11.895 billions).

What are the causes of black money?

10 Main Causes of Black Money in India – Explained!

  • Unrealistic Tax Laws and Tax Frauds: The increase in taxes and duties compels some people to evade them.
  • Different Rates of Excise Duty:
  • Control Policy:
  • Quota System:
  • Scarcity:
  • Inflation:
  • Elections in a Democratic System and Political Funding:
  • Real Estate Transaction:

Who has written an essay on black money and black economy?

D.K. Rangnekar’s estimate of black money showed an increase in the extent of black income in India from Rs 1,150 crore in 1961-62 to Rs 3,080 crore in 1969-70 which was 8.4 per cent of GNP.

Is black money beneficial?

The short point is, black money at best can act as a steroid which gives temporary boost to economic growth. Prolonged dependence on it can leave damaging effects on a nation and its people.

Is black money real money?

The black money scam, or the “wash wash scam”, happens when fraudsters obtain money from their victims by persuading them that piles of banknote-sized paper in a trunk or safe is really money that has been dyed black to avoid detection by customs officials.

What are the effects of black money?

Black money is largely attributed to tax evasion. Its direct impact is the loss of the Government revenue. Since the Government fails to get sufficient tax revenue due to large-scale tax evasion, it is forced to resort to high taxation and deficit financing which again carry their ill-economic effects.

What is black money Pakistan?

The unreported economy or the black economy. comprises those activities that circumvent or evade the payment of taxes, breaking the. fiscal rules. It includes income which should be reported to the authorities but is not. The size and growth of black economy adversely affects various economic and tax.

How is black money converted into white?

CASE 1: Go to a Jeweler. Give him the amount you want to convert your cash into white. he would give you a cheque back for the same amount less 4%. He would give you a purchase bill to show that you have sold silver utensils to him.

What is the effect of black money in our economy?

How can I reduce black money?

Remedies or Measures to Curb Black Money in India

  1. Demonetization. Demonetization of currency of high value say Rs.
  2. Voluntary Disclosure Scheme.
  3. Raids.
  4. Rationalization of Controls.
  5. Taxation Reforms.
  6. Vigorous Prosecution.
  7. Special Bearer Bonds.
  8. Rewards and Awards.

Begin typing your search term above and press enter to search. Press ESC to cancel.

Back To Top