International Journal of Applied Research
Vol. 5, Issue 8, Part D (2019)
The problem of black money in India and it’s controlling measures
In the post-Independence period the size of the black economy has increased considerably in India giving immense power to unscrupulous people to influence state policies in their favour and marginalize the common and poor people. According to the definination of the White Paper on Black Money released by the government of India in May 2012, Black Money is the assets or resources that have neither been reported to the public authorities at the time of their generation nor disclosed at any point of time during their possession.
Introduction: Recently, black money becomes a great problem for India in present days. It creates hindrance and obstacle for improving and developing country. Now-a-days tax avoiding and hidden property is common incident for most of businessman & rich high class families. As a result the government does not get actual amount of tax money from the public & organization. The money which is not counted by the government or the money for whose tax is not paid is also treated as black money by the government. A great portion Indian citizen is escaping from paying tax or giving wrong information for their tax. Naturally it becomes impossible for the government to get actual measurement of black money. The government always tries to stop it but fail. Beside Corruption, black money are also growing day by days which beyond out of control. NIPFP had defined black income as the aggregate of income which are taxable but are not reported to the tax authorities. Further black incomes or unaccounted incomes are the extent to which estimates of national income and output are biased downwards because of deliberate, false reporting of incomes, output and transactions for reasons of tax evasion, flouting of other economic controls and relative motives. Thus black money includes i) tax evaded income ii) unaccounted income. Black money is used to refer to money that is not fully legitimate in the hands of the owner. It can be created by legal and illegal means. There are many causes for creating black money in India. The existence and spread of black money has serious consequences for the socio-economic fiber of the country. This research paper tries to point out the causes and consequences of black money problem in India and tries to find out the ways for solving the black money problem.
How to cite this article:
Sayan Sarkar. The problem of black money in India and it’s controlling measures. International Journal of Applied Research. 2019; 5(8): 256-259.