Essay On Black Money

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Black Money Name: Saquib Ali Shahid Ali Khan Class: M.A. Economics – Part I Roll no.: 1803 Meaning: In simple terms, black money is income obtained illegally or income not declared for tax purposes. Means of Acquiring Black Money and its Forms: There are various means of acquiring black money. A common and achievable source of such money is simply not revealing one's whole income for tax calculation i.e. concealing a part of the income from the government to evade taxes. On the other hand, wealth obtained from bribery, smuggling, black marketing, robbery, etc. is black money. At the same time, a lot of dealings and transactions can consist of black money. For example, if a person purchases a second hand car for Rs. 1,00,000, and accepts a receipt of only Rs. 70,000, the balance of Rs. 30,000 is black money for the seller, as it is unaccounted income. It can be in the form of real estate such as houses, shops, plots or other assets. Gold, silver, diamonds or jewellery also can amount to black money. Possible sources of black money include drug trafficking, weapons trading, terrorism, prostitution, selling counterfeit or stolen goods, and selling pirated versions of copyrighted items such as software and musical recordings. Thus, black money is a vice…show more content…
This has do with the rates of taxes on income earned by individuals. In India, if a person’s income is between 2.5 to 5 lakh rupees annually, he has to pay 10% towards taxes; if he earns between 5 to 10 lakhs he has to pay 20%, and if he earns more than 10 lakhs annually, he has to pay 30% of this income as taxes. That means, the more you earn, the more will you taxed i.e. at a greater percentage. Then there are indirect taxes, such as sales tax, value added tax, customs duty, stamp duties, etc. Therefore, the primary and fundamental measure to curtail the generation of black money is to reduce the tax

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