Black Money is earned by illegal sources. It is not reflected in financial statements. We have collected here all the important and shocking facts about black money. Kindly go through it as per your needs.
Short and Long Paragraphs on Black Money
Paragraph 1 – 100 Words
A large amount of money which is left undisclosed for the tax payment is called black money. It is earned by the mean of hiding from the tax authorities of a nation. In India, a major part of income remains unpaid for taxation.
Black Money is a threat to the economy of a nation. There are various sources of earning black money. It includes commission, gambling, unethical business sources, major scams in private and public sector banks, etc. These sources are common for earning huge money, due to their unethical ways of earning, and they are termed as black money.
Paragraph 2 – 120 Words
Black Money carries two main sources i.e. Illegal sources with non-claimed taxation and legal sources with non-claimed taxation. It is a hidden form of money which is in a huge amount, but not for public use. The owners of the money maintain fake accounts and attempt several tactics for keeping it away from the eyes of the government. In India, Swiss Bank accounts are generally used for accumulating the black money.
Famous business tycoons and celebrities are accused of hiding their actual income. The maintenance of black money is related to the non-payment of tax. If a person earns more than a general tax slab, he/she will be liable for paying the appropriate tax imposed on his/her income.
There are various sources of black money generation like quota and Licence system, excise duty forgery, many national and international scams, etc.
Paragraph 3 – 150 Words
Black Money is the unethical money collected by forging the tax authority of the economy. There are various business and black money sources for violating the situation of a nation’s economy:
Tax Evasion: Tax evasion is the false income tax statement. It misleads the tax authorities by printing the wrong records of the tax imposed on them.
Foreign Direct Investment: The money deposited in foreign countries is also one of the major reasons for increasing black money in the country.
Unethical Business: Unethical business like smuggling, gambling, unregistered liquor business, etc. hides their income sources and generates black money.
Government Expenditure: The expenditure on printing hoardings and promotional events of political parties are the major source of black money.
Inflation: Inflation is also one of the major reasons behind the stubborn collection of Black Money.
Hawala System: The monetary settlement between two people without any proper consent is called the hawala system. In government offices and in government and private sector projects, the hawala system is common.
Paragraph 4 – 200 Words
Black money is the major loss for an economy. It is the false representation of income for cutting down the tax amount. From the continuation of the above paragraph, here are the consequences of black money:
There are very serious effects of black money on a nation’s economy. The actual figure for identifying black money in a nation is ignored. The black money economy or the dual economy is one of the main reasons for deteriorating the nation’s economy.
The national income of a country is deeply affected due to the hidden money sources present in the nation. The unrecognized black money from white money sources gives rise to the excessive rise in black money. Due to illegal earning of excessive black money creates a gap between rich and poor society.
The circulation of money is also obstructed due to the unethical mode of collecting black money. As the distribution of money will remain in few hands and the poor sector of society remains in the same condition due to the unavailability of money.
The general public believe is also affected but the black income present in society. Black money is the major reason for poverty, corruption, and unemployment. The failure of various constructions and other government projects one of the major reasons behind the unethical distribution of money.
Paragraph 5 – 250 Words
Black Money is the money that is out of reach from the tax authority of a nation. In India black money is the major issue for the taxation authority.
Black Money can be monitored by implementing a strict taxation system. Tax raids are also a legal move for collecting the suspicious income back in the economy. The voluntary disclosure schemes by the government will allow the taxpayers to disclose their illegal money. The charges of non-payments of taxes will be waived by the government.
This option will help to generate hidden income that is not disclosed yet. Demonetization is also one of the important steps for collecting the black money back in the country’s economy.
It bans the current currency for the general public, so the hidden money which is accumulated for a long time needs to be disposed to gain new currency. The use of Plastic money for transactions can be a beneficial step for coping up the black money.
Filling Income Tax is Moral Duty
Generating awareness among taxpayers can be beneficial. Taxpaying is the moral duty of a citizen of the country. The government can broadcast taxpaying advertisements on radio and television.
Some Facts Related to Indian Black Money:
- There is a total of 4,479 bank accounts of Indians in HSBC, Geneva Branch.
- The government is still looking for recovery of total of 14,958 Crore unregistered money.
- In the Year 2012, a total of 6 Lakh Crore rupees were found to be illegally hidden in foreign banks.
- India is listed 5 under twenty exporters as “Under-Invoicers with respective proceed requirements”.
FAQs: Frequently Asked Questions
Ans. Black money is also called bribe which is given illegally to do any work.
Ans. People store black money in Swiss bank accounts.
Ans. Black Money of India is estimated to be 3 lakh crores.
Ans. Indian Government did demonetization to stop black money.