BLACK MONEY BY NILISHA PRIYA MENDONCA@LEXCLIQ

BLACK MONEY

 

 

The black money is accumulated by the criminals, smugglers, tax-evaders and other anti-social elements of society. Black money  is funds earned on the BLACK MARKET on which income and other taxes have not been paid. The total amount of black money deposited in foreign banks by Indians is unknown. Rator is called Black money.Thus, Black money is one of the major drawbacks in a nation’s growth.In March 2018, it was revealed that the amount of Indian black money currently present in Swiss and other offshore banks is estimated to be ₹300 lakh crores or US$1.5 trillion

There are various sources of generating black money one of them is the government sector. Corrupt government officials authorized to make policy and financial decisions and get perks/bribe in return. This money obviously cannot be declared and is purposely hidden from the tax net; though, it is invested in a new venture through shell companies or money laundering. Thus, the money which should be taxed and the taxed amount utilized for public welfare schemes, escapes the tax agencies, having a deteriorating effect on the overall economic health of a nation. Transfer Mispricing is the process by which private firms generate black money.

Main cause for the increasing rate of black money in the country is the lack of strict punishments for the offenders. The criminals pay bribes to the tax authorities to hide their corrupt activities. Thus, they are rarely punished by the judge. The criminals who hide their accounts from the government authorities include big politicians, film stars, cricketers etc. The unlawfully acquired money kept abroad is brought back to India by unknown processes like getting the money out of one country, etc. In 2011, the Indian government received the names of 782 Indians who had accounts with HSBC. As of December 2011, the Finance Ministry has refused to reveal the names, for privacy reasons, though they did confirm that no current Members of Parliament are on the list. In response to demands from the  BJP opposition party for the release of the information, the government announced on 15 December that, it would not publish the names, it would publish a white paper about the HSBC information. On 8 November 2016, in a sudden address to the nation, the Prime Minister Narendra Modi announced that  circulation and usage of currency  notes of Rs.500 and Rs.1000 are stopped  from midnight. He said this decision was taken to catch black  money holders and black money which results in  corruption which was destroying the country. He also said that the process of cash circulation was directly related to corruption in the country impacting the lower classes of society. However, neither Indian banks, nor the Reserve bank of india (RBI) were adequately prepared for this, resulting in currency shortages up to March 2018 and difficulties for Indian citizens. By 28 December 2016, official sources said that the Income Tax department detected over ₹41.72 billion (US$580 million) of un-disclosed income and seized new notes worth ₹1.05 billion (US$15 million) as part of its country-wide operations.

Famous advocate and former law minister Ram Jethmalani along with many other well known citizens filed a Writ Petition (Civil) No. 176 of 2009 in the Supreme Court of India seeking the court’s directions to help bring back black money  which was hidden abroad and initiate efforts to strengthen the governance framework to prevent further creation of black money.

In India, there is a lack of deterrent punishment for holding black money. As per one survey  Between 2008 to 2012, more than 20,000 cases of corruption were filed and only 20 percent of cases reached final conclusion .It is important to mention that Black money is generated by one person but its effect is felt by another person. For Instance, the government is not able to form and implement apt social welfare policies for poor and disadvantaged people of society due to low level of tax revenue as people holding black money do not pay taxes

It is also important to mention that black money can also be generated by legal sources also. For Instance, those government doctors and teachers who do private practice at home violate laws as they are not allowed to do private practice and consequently do tax evasion by not disclosing taxable income. This results in the generation of black money as it affects the tax revenue of the government.

 

 

Leave a Reply

Articles

Equilibria CBD Gummies (Scam Exposed) Ingredients and Side Effects

Equilibria CBD Gummies are a reasonable extraordinary and hearty course of activity.They incorporate present day and standard adornments to address or fix logicalissues. You need to kill the cannabinoids from the plant with exorbitant mindfulness. It very well might bejoined with first rate trimmings to make it extra enormous and taste better.The creator besides makes sense […]

Read More
Articles

Bio Lyfe Keto Gummies Reviews (Scam Or Trusted) Beware Before Buying

Bio Lyfe Keto Gummies are metabolites of DHEA, a fundamental substance known to invigorate the effects of making on many body limits. Since keto gummies don’t separate into estrogen or testosterone, it is a 100% safe choice rather than its parent compound. Ketogenic gum has been shown to help the body with getting in shape by […]

Read More
Articles

Bio Lyfe Keto Gummies (Updated Reviews) Reviews and Ingredients

Bio Lyfe Keto Gummies advance weight decline fundamentally by widening inner power level through the course of thermogenesis. Thermogenesis is also revived by various improvements like DHEA, caffeine and ephedrine, yet these blends regularly cause horrifying antagonistic outcomes, for instance, hypertension. Creating thermogenesis with close to no shocking unavoidable outcomes is one of the central benefits […]

Read More