Importance Of Black Money In India

Title: Black Money in India: Issues and Challenge
Sub-theme: Legal Control of Black Money: Law and Policies
Author: Nikhil Pandey
Co Author: Rishindra V. Singh
Introduction
In Ancient times the ways to generate money as well as its usage was very transparent i.e. everyone knew the sources of money and its application, which may be referred as WHITE MONEY. So, in the past, White Money was in use but now the colour of Indian money has changed to Black. There is a perception that black money is bad money, bad for the nation and bad for the economy. Not really. In the first place, we need to understand the meaning of black money. Black money is explained as money earned on which no income tax is paid to the government. In other words, there is no uniform or accepted definition of ‘black’ money. Several terms are in use – such as ‘black money’, ‘black income’, ‘dirty money’, ‘black wealth’, ‘underground wealth’, ‘black economy’, ‘parallel economy’, ‘shadow economy’, ‘underground’ or ‘unofficial’ economy. If money breaks laws in its origin, movement or use, and is not reported for tax purposes, then it would fall within the meaning of black money. The broader meaning would encompass and include money derived from corruption and other illegal ways – to include drug trafficking, counterfeiting currency, smuggling, arms trafficking, etc.
Let’s take a look at the age-old routine of giving and taking of bribes. In India, the act of giving fixes is seen as a fundamental abhorrence, with