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Black Money Essay

Black money is basically the accumulation of income obtained illegally. It is not


declared for tax purpose. The issue of black money is prevalent in India and the
government has come up with stern measures to deal with it lately.

The money earned via unlawful means is known as black money. There are various
sources of generating black money and people have been practicing these since
decades despite the negative impact they have on the society. Here are essays on
Black Money of varying lengths to help you with the topic in your exam, class tests
or competitions.
Essay on Black Money
Black Money Essay � 1 (200 words)

The problem of black money is not new to our country. Money generated via various
illegal sources and the attempt to hide it from the government for the purpose of
tax evasion has been a common practice here.

The problem of black money has given rise to a number of other issues in India.
False information about the country�s economy is among the major issues being faced
due to black money. The government is completely dependent on the tax revenue and
evasion of tax to accumulate black money has a major impact on the nation�s fiscal
system. Apart from the impact it has on the nation as a whole this also impacts the
general public as it is the basis of social and economic disparity in the country.

There are a number of causes of accumulation of black money. The high tax rate set
by the government is said to be the main reason for it. Other reasons include the
different rates set for excise duty, the price control policy, the real estate
market, inflation and quota system. People look for various ways to hide their
income from the government and get away with it.

The need to stop this practice must be sensitized. While the government is taking
steps to eliminate this problem it cannot achieve success in this direction if the
public doesn�t support.

Black Money Essay � 2 (300 words)

Black money is basically the money earned in black market. It is the amount which
is hidden from the government so as to avoid taxation on the same. The accumulation
of black money has several negative repercussions on the society with economic and
social disparity being the major ones.

Sources of Black Money

Now the question remains that when there are so many negative impacts of black
money then why isn�t the government taking steps to eradicate the problem? Well,
the government is making efforts to free the country of black money however the
sources of this ill practice are stronger than the policies imposed to get rid of
it.

It goes without saying that evasion of different types of taxes including the
income tax, state taxes, corporation tax, excise duty and customs duty is the key
to generating black money. Here is a look at the various other sources of black
money:

Black income via exports: A lot of black money is generated by businesses that
export their goods.
Black market: The good supplied in the black market are another source of black
money.
Stock Market: A lot of profit is generated via the stock market trade and most
of it goes unaccounted. It is this unaccounted profit that makes for the
accumulation of black money.
Illegal commissions: Many government officials take illegal commissions from
the general public for offering certain services. The income earned via this means
is all black.
Bribes: A lot of bribery goes on at different levels in the government as well
as private sector and this also contributes to black money.
Scams: Scams done by politicians and other people in power are undoubtedly a
major source of black money.

Conclusion

The problem of black money has persisted in our society since decades. It is high
time the government should come up with a foolproof plan to free the country from
the clutches of this ill practice.
Black Money Essay � 3 (400 words)

Black Money is one of the major problems being face by our country these days. This
is one of the reasons behind the economic disparity that in turn causes social
inequality which is the root cause of several problems in the country. There are a
number of factors that lead to this problem. Some of these include the high rate of
tax, increased cost of living, inflation, different rates of excise duty and the
real estate market.

Ways to Control the Problem of Black Money

It is important to control the problem of black money as it is hampering the growth


and development of the country to a large extent. Here are some of the ways in
which we can control this issue:

The tax system should be realistic. People must not see it as a burden. High
tax rate would only make people look for ways for tax evasion.
The process of tax collection must be made more efficient. The government must
take certain steps to award the officials who are dedicated and sincere towards
this task so as to motivate more and more officials to take this seriously.
The government must work on its price control policy as it is also one of the
reasons behind the generation and accumulation of black money.
The public sector projects must be monitored stringently so as to bring down
their expenditure.
The private sector investment expenditures must also be monitored effectively.
The government must take action against the corrupt officials who in many ways
contribute to the growth of black money.
Administrative corruption must be controlled at various levels.
The sale and purchase of properties must be thoroughly monitored by the IT
officials to ensure that people do not hide any black money in the event.
The politicians, celebrities, senior civil servants and media people must set
an example for the general public to pay their taxes.
Incentives should be given to those who provide voluntary disclosures of
income.
The exchange rates must be realistic and should reflect our comparative rates
and position in the world economy.

Conclusion

While the Modi government has taken the step of demonitization to break this
illegal wealth accumulation, there is still a lot that needs to be done in order to
bring this problem down. People must understand the importance of paying the tax
and should refrain from concentrating black money. The small contribution each
citizen does in the form of taxes helps in the development of the country.
Black Money Essay � 4 (500 words)

Black money is the money on which tax is not paid. It is hidden from the government
just to keep it exempted from tax. There are a number of means used by people to
keep their money under wraps and escape from paying the tax. Here is a look at some
of these and also the way government has tried to curb this problem in the recent
past.

Black Money Deposited in Foreign Lands

Many big business men, ministers and celebrities are known to have deposited their
money in foreign banks. Though the total amount deposited by Indians in foreign
bank is not known, there are many reports claiming estimate amount of money
deposited by Indians in their foreign accounts. As per one of these reports a
whopping US$1.06 trillion has been held in Switzerland while another report claims
that Swizz bank accounts of Indians includes around US$2 billion. It has also been
claimed that illegal funds of Indians in foreign tax havens amount to around US$
500 billion.

Demonetization � A Step to Eradicate Black Money

Recently, the Modi government took a major step to eradicate the problem of black
money. On the 8th of November 2016, Narendra Modi announced that 500 and 1000 rupee
notes would cease to be legal from midnight. ATMs all across the country were
closed on 9th and 10th of November. These were refilled with 2000 rupee notes and
new version of 500 rupee notes. The old notes were removed completely from
circulation. As per the government this action would bring down the accumulation of
black money and bring down the illegal businesses and activities that are funded by
the same.

The sudden announcement of the withdrawl of old currency notes and the shortage of
new notes created havoc in the country and disrupted the normal functioning across
of various sectors for several weeks. The decision had mixed reactions from the
public. The decision was condemned by many stating that it has only caused
inconvenience to the general public. It has been criticized for being poorly
planned. Public came out to protest against the government in various parts of the
country.

However, the government claimed that the move is aimed at improving the overall
condition of the society and people will see the positive results in the long term.

Impact of Demonetization

While the move was condemned and criticized by many here is a look at the positive
impacts of demonetization:

Black money was majorly destroyed due to this move of the Modi government.
It came as a shock for the political parties and ministers who used black money
for campaigning and other activities. It disrupted the ill practices used by these
parties to win votes.
The amount of black money floating in the real estate sector saw a huge dip.
Hawala transactions that promote terror activities came to a halt.
It has also impacted Maoists and their movements negatively.

Conclusion

The issue of black money has been eating the country like a parasite. While
demonetization has helped in controlling it to some extent there is still a lot
that government should do to get rid of this issue