Question

Black money its social and economic issues essay

Answer 1

Black Money and its social and economic issues.

Black money is unaccounted money, illegally acquired wealth or other assets made through accepting bribery or other morally depraved acts. It is not just cash stashed at hidden places in the house or in benami accounts. It is in various forms like shares, bonds, securities, or other forms of instruments. It may be in the form of real estate-houses, shops, plot or other assets like cars. It may be in the form of gold, silver, diamonds or jewellery.

It is believed that there is a huge amount of black money in India, estimated to be 200 million crores. It is also said that in our country over 200 crore rupees of black money is created every year. This reflects the magnitude of black money market in India. This also bears testimony to the amount of corruption prevailing in the country and the illegal activities being carried out. The biggest means of creating black money is avoidance of income tax and sales tax.

Most of the businessmen never show the actual income they earn. They either never maintain any books of account or also keep false accounts to be shown to the authorities. As a result, the tax which is due to them is never paid. But the money they make out of their business keeps on accumulating with them. After a period of time when their wealth increases to huge amounts, they cannot show where this money has come from. This is black money. While shopping, most of us never ask for a bill from the shopkeeper or the dealer. We never realise its consequences.