Question

how black money is produced​

Answer 1

║⊕ANSWER⊕⊕

• The sellers in both examples have earned money from legal sources but evaded taxes.

• Black money is money on which tax is not paid to the government; it is normally made through illegal means

Answer 2

Black money is produced in many ways some of them are bringing jewelry into the country in illegitimate ways and selling them, tax evasion, illegal printing of fake money.

Detailed answer

The most basic way that black money is created is by tax evasion, when a person evades the tax they are supposed to pay for the money they have obtained or possess, it makes that money a black money source.

• Another way is selling gold that is jewelry that has been brought from offshore without paying the appropriate duty tax, and selling them here this destabilizes the entire financial system of the country as the money obtained like this is completely illegal and unaccounted for.
• Printing of fake money has been a huge issue as this is black money as unaccounted money that is fake money is entering into our system