The 2nd is to take appropriate steps to forestall the creative activity of black money. Lower taxes and simpler compliance process reduces black money, suggests the white paper.
Heavy capital gains tax should be lowered. The menace of parallel black money has grown to alarming promotions and is eating away the vital of our national economy. Harmonizing to one study the Swiss Banks have admitted that Indians stand at the top in the list of the people who have deposited money in the Swiss Bankss.
Old and complicated laws such as the Urban Land Ceiling Regulation Act and Rent Control Act need to be repealed, property value limits and high tax rates eliminated, while Property Title Certification system dramatically simplified.
As black money is largely generated by unaccounted deals, its first casualty is the revenue because it loses the tax which would have come to the exchequer if such transactions had been done in the open and duly accounted for.
Further, there are those who by keeping their ill-gotten gains outside the country as deposits in foreign banks deprive the country of a part of its wealth which could have been put to productive use here. This huge expenses in turn makes them corrupt. The authorities should broaden the revenue enhancement base and should convey all people in whatever is the beginning of income including agricultural income if the income exceeds Rs.
The quantum of such monies may be rough indicators of the weakness of the State, in terms of both crime prevention, and also of tax collection.
Past instances of Origin of the term black money essay cozenages have shown that agents.
Unless it is ruthlessly combated and cut to size, it is likely to upset the whole economy planning. The institute pointed out that for its very nature, the unaccounted income could not be precisely quantified.
Instead, right since Novembermany new currency notes had been given to black money hoarders, facilitating white washing of their black money.
One example posits that the term started with a tradition of slaveowners or slave traders using that day as an opportunity for selling their wares: But the authorities has already rejected this suggestions as it is non economically feasible suggestion. Kaldor, the income tax loss through tax evasion was of the order of Rs.
Stock market is another channel to put black money. Agents and middlemen pocket considerable sums as their share of commission in the payoff to influence political decisions. Tendency to evade tax creeps in when tax rates are high.
The existence of black money has, to a large extent, been responsible for the inflationary pressures and unhealthy speculation in commodities. This phenomenon arises essentially from the dual nature of the national economy.
The National Institute of Public Policy has roughly estimated the amount of black money in our economy at around Rs 37, Crores. This is one case where a individual has been arrested for hoarding black money in the foreign Bankss. It has further argued that the privacy of individuals would be violated by the revelation of data.
Controls, licenses, and permits should be reduced to minimum. The anti-social elements are hoarderers, black- marketeers, tax-evaders, smugglers, speculators and other people who take pleasure in such anti-social activities.
Are these contributions received and paid by checks?
Supportive measures[ edit ] Along with deterrence, the report  suggests public awareness initiatives must be launched. They bribe Government officers and lead them to corruption and dishonesty. All tax laws should be revised so as to eliminate loopholes.
Other factors for generation of black money include i high rates of taxation under direct taxes which encourages tax evasion, ii controls, permits and licenses iii price control without adequate machinery for effective distribution iv pugree and hawale systems, v donations to political parties for elections vi corrupt business practices, vii smuggling and other illegal anti-social activities.
The authorities has become cognizant of this and have done a batch of work to better the system. This could have happened by unscrupulous politicians yielding power with the connivance of RBI top brass to plunder wealth of the nation. The term black money consequently has both these implications.
Different persons have understood this expression differently and the term has not yet acquired a precise connotation.
Most of the money minutess should be encouraged to be made through the banking channels. There are no inducements to the rise the morale of the honest taxpayers.
They put integrity at a discount and place a premium on vulgar display of wealth. India has no centralized repository— like the registrar of companies for corporates—of information on public trusts. Real estate transactions also involve complicated compliance and high transactions costs in terms of search, advertising, commissions, registration, and contingent costs related to title disputes and litigation.
But the bulk of the concern community. According to one estimate presented by the Finance Minister in Parliament, inblack money was 16 per cent of the GNP; in it increased to 52 per cent of the GNP.An Article/Essay on Black money and its disastrous influence on Indian economy Article shared by The money that is earned and hoarded by dishonest and unfair means and kept in secret to evade taxes is called black-money.
Term black money as used in modern times • In the modern world, the term black money is used for the money which is unaccounted and no statutory taxes are paid to the authorities since it is kept within the country of abroad hidden from the. What does the term Black Money mean? Black Money Essay BLACK MONEY Definition Unaccounted-for and untaxed cash generated by dealingsin a black economy, black market The history of money begins around years ago.
Claim: The term "Black Friday" originated with the practice of selling off slaves on the day after mi-centre.com 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.
The most unfortunate aspect is that it has come to be accepted as normal fact of life. The black money is the result of the activities of dishonest persons.
It is the offspring of cunningness and underhand policy. Hence it is underhand earning. It is unaccounted money.
It is evaded money. Hence it is called black money.Download