What is black money and what is the effect of black money on our economy
Answers
Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015
Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 is an Act of the Parliament of India. It aims to curb black money, or undisclosed foreign assets and income and imposes tax and penalty on such income. The Act has been passed by both the Houses of the Parliament. The Act has received the assent of the President of India on 26 May 2015. It came into effect from 1 July 2015.
Related to default in payment of tax arrear
If the taxpayer is in default, he/she is liable to pay a penalty which equals amount of tax arrears.
Related to other defaults
If the taxpayer does not comply with the rules and officers and is subject to defaults then he/she is liable to pay a sum ranging from 50,000- 2,00,000 INR.
Black money refers to the money earned through any illegal activity controlled by country regulations.
The effects of black money on our economy are as follows:
1.Dual Economy.
2.Under Estimation.
3.Loss of Revenue to the government.
4.Distribution of Scarce Resources.
5.Average effect on production.
I Hope this answer will be helpful for you.