black money

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n that part of a nation's income that relates to its black economy any money that a person or organization acquires illegally, as by a means that involves tax evasion (U.S.) money to fund a government project that is concealed in the cost of some other project

Black money is that money in which tax is not paid to government from that money and that money is generated by illegal activates likes bribes etc..

Overview of back money

These days every where we are hearing the word black money/corruption from the news channel, news paper, Magazines etc. Corruption is increasing in India with full swing. Lots of scams was done by big co-operates, politician, High profile government executive persons. There are estimate that more $1500 billon USD are in Swiss bank from Indian account holder. This huge black money which is slashed though in Swiss bank is 20% of Indian economy. This black money put a great effect in Indian economy. As a result in India richer are going richer and poor are going poor every day in India. This type of economy is really threatening to India.

Black money
Black money is that money in which tax is not paid to government from that money and that money is generated by illegal activates likes bribes etc.. That black money remains unaudited /accounted in the duration of country's tax assessment period. It causes big losses of tax revenues to the government.

Impact of Black Money

Country's Economic Growth

The biggest impact of black money is that it halts the country GDP growth due to lack of funds from government. Government earning is depends upon the tax revenue. If the public will not pay the tax to government, Government cannot fund to particular sector which needs the funds for their better operation. Due to lack of funds government force to have take loan from World Bank or other's countries. Which will increases the burden of foreign debit on the government.

Increase the Inflation

The inflation rises while the black money circulates in the market. The price of eatable /others goods are increased to supply of that black money and less production of things in the market. So people which have that money they offer more price in the market. As compared from other person in the market.

Eliminating the national resources

The impact of black money heavily putts on the national recourses of the country. Our national recourses are eliminating not for the sake of our government purpose. Because some corrupt person are using the national resource for his own profit.

Increase corruption in society

Black money leads to increase the corruption in the society. The person who has the black money they will give bribes to politician, government officials for their business or for their personal work. These people can get everything what they want from the society. So other people face the problem. In that case qualified and eligible person have to do more hard work to get that job or business from government or from other source. Because they cannot give bribes for getting the job , contract etc. When they will get disappointed from his effort then they have force to gives bribes for particular task to politician, high profile government person. So they also involves in corruption.

Effects on Income distribution system

Black money increases the personal income difference in the society. The person who is paying his tax regularly, his income didn't match with other person who is not paying tax. So it widens the income gap in the society.

Ill legal transfer funds from India to other countries

Black money is transfer to foreign country through secret channel. This transaction of black money to foreign country violates the law of exchanges regulations.

Formation of parallel economy

The money generated through ill legal activities that are kept hidden from the concern government authorities. Taxes are not paid on that money. In opposite to this white money shown in accounts and tax paid on it. There is not transaction record of black money in the market. This is two different economy one is accountable and other is not accountable. Now a day's plenty of case of black money rises. The black money involved in illegal transaction accounts that its between the range of 20% to 50% of country's growth. The effect of parallel economy is too much on Indian economy.

Impact of India's reputation on the world

This Black money and corruptions put a very impression in India reputation on the world. Many big businessmen in world are pulling their hand back from India. They are not interested in to do business with India due to this corruption. It's also effect on Indian economy. In corruption perceptions index (CPI) India is ranked 87 numbers out of 178 countries. Due these big scams like 2G scam, common wealth game scam.

Cannot predict the key indicators of economy

Due to the presence of this black money in the market, which was not reported to the government. Government cannot give the exact figure of country GDP Growth, saving income ratio, sector wise national income of India etc.

Conclusion
Black money is big black hole in Indian economy. Overall the entire burden comes to the shoulder of common people of India. These scams broke the backbone of Indian economy and common people. These common people are fight for their bread and butter and these. These scams were done by politician and other high profile person but common people of India have to pay that scam in society. To stop this corruption, we all people of India have to come forward like Anna Hazare and Baba Ramdev for fight against the corruption. So that government of India has to take some strict steps to stop this corruption in India.

Definition of 'Black Money'

Proceeds, usually received in cash, from underground economic activity. Black money is earned through illegal activity and, as such, is not taxed. Recipients of black money must hide it, spend it only in the underground economy, or attempt to give it the appearance of legitimacy through illegal money laundering.

Investopedia explains 'Black Money'

Possible sources of black money include drug trafficking, weapons trading, terrorism, prostitution, selling counterfeit or stolen goods and selling pirated versions of copyrighted items such as software and musical recordings. Black Money is also the name of a television series hosted by Lowell Bergman that explores the secret world of bribery in international business.

Black Money and Corruption- Both sides of the same coin

June 4th, 2009 Param

Black Money Issue During the 15th Lok Sabha elections BJP leaders had raised the issue of black money that corrupt Indian millionaires, political leaders and police officials have deposited in the foreigner especially Swiss banks. They were saying that billions of black money will be brought back into the country and India will become worlds most prosperous country in a very short time span. But one question rises that corrupt industrialists and political leaders are the owners of this black money not the ordinary Indians and thus who will bring the black money back into the country and who will allow doing so. During the election time it was a perfect slogan to befool the people but now Congress led UPA government should seriously and honesty think about this problem so by bringing the black money back into the country the progressive works should be given a new impetus.

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Reality In reality the term black money is related with cash flow of the currency and only those people know how to use it properly who are the masters in this profession. Firstly black money is deposited in the foreigner countries or properties are bought in and out of the country with this money. Sometimes, people buy land or large farm houses in the names of their relatives which are usually bought in non-existent or bogus names. Whenever some officer or leader is caught red handed taking the bribe they usually decline about their ownership of some property etc. so properties are bought in non-existence names by the corrupt officers and leaders. There are many examples of it that corrupt leaders amassed a lot of property during their rule and they were blamed for corruption. They lost in the elections but after elections their children live the life of kings. CBI raids recovered documents of property that had been bought in non-existent names. Luxury cars were found but they say that their relatives are the owners of these items who are the god fearing people and daily goers to the Gurudwaras or temples. There are many examples when many high class government officials and police officers had collected crores of rupees though corrupt means for the satisfaction of their personal interests.

Corruption Definition United Nations Development Program has given a new definition to the increasing corruption of Asian countries according to which if some political leader or government officer misuses his power for his personal interests or accepts money or gifts as bribe then it can be called corruption. There is also another example of corruption: to earn money by abducting someone, acceptance of commission for doing some government works or earn by fraud. There is another way also. Sometimes people buy the government property in their own name by corrupt means. Then a large amount of money is taken from some bank by giving the guaranty of that property and that loan is never paid back. UNDP has said that a few people are becoming rich by the misuse of their position and by fearing the ordinary people. On the other hand poor are becoming poorer. Thus new investment and the progress rate of the country is adversely affected. There is an organization named Transparency International that keeps a hawks eye on the corruption of whole of the world. According to it no other country is as corrupt as isIndia. It has analyses the reports of 159 countries of the world and Indiais at number 12th as for as the corruption is concerned. Singapore andHong Kong are very less corrupt countries. One striking fact is that when a country like Hong Kong can end the corruption then why India cannot do so? The main reason behind most of the worlds corruption is it that officials dont get

enough salaries to meet their daily needs. So they accept bribes. Indonesia is more corrupt country than India. Its government employees can meet only 7-10 days daily needs with their salaries. In Mongolia Magistrates dont get more than one thousand rupees as their monthly salary and half of them dont have homes to live.Philippines officers are also among the most corrupt people of the world.

NRIs Politicians and high government officials of Bihar, Uttar Pradesh and Punjab like Indian states earn crores of rupees by corrupt means and deposit that black money in Bangkok or Switzerland. Then that black money is transferred to other banks or countries. NRIs (Non-Resident Indians) can buy property in India. In most cases these properties are bought in the names of NRIs but in reality corrupt leaders and bureaucrats spend the money on these properties. Thus black money has started to return to India by this new method and is becoming the white property of corrupt leaders and bureaucrats. Now ordinary people have understood this fact that political leaders and corrupt bureaucrats are looting and grabbing countrys money and property by both hands.

Solution This problem can not be solved till the rise of strong will power in the political circles of the society. The present government should take the help of the Interpol to find out that which leader and bureaucrats has deposited his black money in which country and which bank. And that should be brought back to the country with the help of the governments of those countries. To stop the government officials and police officers from indulging into corruption, government should follow the American pattern. In America nobodys job is secure and it keeps the fear of losing their jobs. As employees can be thrown out of system in the private sector by giving them three or six months prior notice, corrupt government officers should also be thrown out by giving them three or six month notice. This corrupt leaders and bureaucrats have started to take themselves as the rulers of the public instead of understanding themselves public servants. They earn and grab innumerable black money by forming this unholy relationship. If this practice is not put to an end then the economic progress of the country will get stopped.