please write about black money in 10 lines
Answers
Answer:
Money is an important factor that we all need for our day to day work. Most of our daily activities roam around on how we can earn more money to have a comfortable life. It is not wrong to earn money or think about earning it unless it is not harming someone. The money earned by some wrong and illegal means falls under 'Black Money'. In the below sets of 10 lines, we have talked about different prospects of black money. You can read all of them to enhance your knowledge.
Black money is unaccounted money which obtained illegally.
Answer:
Black money includes all funds earned through illegal activity and otherwise legal income that is not recorded for tax purposes. Black money proceeds are usually received in cash from underground economic activity and, as such, are not taxed.
The unaccounted money hoarded illegally and concealed from the tax authorities is also called black money. So, it is essential that one does not keep any unaccounted or undeclared money, jewellery or any kind of wealth.
Black money is largely attributed to tax evasion. Its direct impact is the loss of the Government revenue. Since the Government fails to get sufficient tax revenue due to large-scale tax evasion, it is forced to resort to high taxation and deficit financing which again carry their ill-economic effects.
If that 40% cash component is not reported to the Income Tax Department, then it is black money. A large number of small shops around the country almost exclusively do business in cash without receipts. All of this could potentially be black money.
The government has come up with a Gold Amnesty scheme to prevent black money in this asset. This is similar to Voluntary Income Disclosure scheme to tap black money in income taxes. Again any cash transaction above Rs 2 lakh demands PAN number. So any large cash deal won't be able to generate black money