The executive classes including the bureaucrats are the other class of people who have accumulated black money by taking bribes.
Money turned to be black if taxes due thereon are evaded. One of the worst consequences of black-money and tax-evasion-is their pernicious effect on the moral fiber of our society which puts a premium on dishonesty and shatters the faith of the common man in the dignity of honest labour and lawful living.
People investing in jewelry and bullion so as to to hide their actual income.
Schemes to voluntarily disclose untaxed property helps restore white money balance and at the same time helps the assailant get away with some relaxation of penalty. As a result, the tax which is due to them is never paid. The basic objectives of economic planning in India, i. But the money they make out of their business keeps on accumulating with them.
Since the dealings are illegal, the money is not genuine earning but black or illegal wealth. What has come to the surface is believed only to be the tip of the huge iceberg lying hidden underneath.
Therefore, by clandestine devices they want to siphon off or convert a portion of the income of the business into black money for the benefit of rich or elite sections related to their business and industry. It may be in the form of gold, silver, diamonds or jewellery. The smugglers have millions of rupees as black money.
It upholds the values of fairness and quality. It is the result of hoarding, smuggling, tax evasion and dealing in immovable property for which the consideration is paid in black. The menace of parallel black money has grown to alarming promotions and is eating away the vital of our national economy.
The share of direct taxes in GDP has also increased from 2. Essay on the Introduction of Black Money in India: In India, the public sector is being allocated with larger size of investment in the successive five year plans. In India, demonetization was done for the first time in and the value of demonetized notes was about Rs crore.
It upholds the values of fairness and quality. According to one study, out of rupees of black money generated in our country, 90 percent stays in India. Thus to have a proper estimate of black money, the biggest sources of black money i. The laws governing the motion of black money exhibit peculiar trends.
In the mean time, various attempts have been made for the estimation of black money in India. Thus the Government has undertaken various administrative and legal measures to check evasion of both direct and indirect taxes.
Searches and raids by Income Tax authorities are conducted from time to time.
Total expenditure of the Central and State Governments and Union Territories has been increasing steadily from Rs crore in to Rs 2,34, crore in 94, which shows an increase of times. Then there is smuggling of goods on the borders, viz.
Estimates of Black Money in India As black money is not accounted it is not easy to estimate it either. The evaded tax as percentage of total tax revenue potential has increased from Some of the bureaucrats who have been under the radar of income tax authorities were caught with properties and other assets, including cash of crores of rupees.
Let me start by telling you that there is a lot of politics going on around the black money and corruption. Black money, also described as tainted money, has seeped into every walk of life and is posing a great threat to the stability of our real economy.
Some of the bureaucrats who have been under the radar of income tax authorities were caught with properties and other assets, including cash of crores of rupees. Cases are pending in courts against many of them on charges of having acquired these assets by illegal means.
Add your own flair and emotions to it. There are two different approaches which are mostly followed in the estimation of black money. India’s black money economy is estimated to be as high as 30% of its GDP.
Black money enters India at a rate of five times more than it leaves. Black money in. Impact Of Black Money On Indian Economy. There can be some major points which shake the Indian economy and the societal foreground as a whole. The following points are enlisted below-The government goes through a severe loss in the evasion of the tax and tax revenue on account of black money generation.
In India, black money is funds earned on the black market, on which income and other taxes have not been paid. Also, the unaccounted money that is concealed from the tax administrator is called black money. The black money is accumulated by the criminals, smugglers, hoarders, tax-evaders and other anti-social elements of the society.
Black-money results in the functioning of a parallel economy in the country. The problem, therefore, needs immediate attention.
Black money in economic terms means 'unrecorded gains'. In other words, it is income which has escaped taxation. Feb 20, · Essay on black money in India information, a short speech, paragraph and article, causes and effects of black money India, solutions to fight black money and corruption, footprint, fight against black money, evil, remedy, for class 6,7,8,9,10 in /5(8).
1. Essay on the Introduction of Black Money in India: By the term parallel economy we mean working of an unofficial or unsanctioned economy parallel to the parent economy of the country.Essay on black money in indian economy