The Commissions and Committees pointed out various loopholes and weaknesses in tax laws and suggested various measures to check evasion of taxes. I like to thank principal madam for allowing me to speak on this topic.
Had there been a sincere attempt to control the Essay on black money of black money in the country by the Government, bureaucrats, tax administrators etc. In order to make the taxes more productive, the Government has been reducing the peak rate of personal income tax from Several other series of such bonds have been released in recent years.
Existence of black money results expansion of service organisation for its protection composed of brokers, touts, musclemen on the one side and a group of income tax practitioners, chartered accountants and liaison officers on the other side to establish a black money culture or an evil network within the economy.
The vested interest always stand in the way of effective measures and get them diluted. Prime Minister Narendra Modi is trying to control all these activities by demonetization and related solutions. IMF staff survey on the unaccounted sector has estimated the black money in India at about Rs 72, crore.
Essay on the Estimates of Black Money in India: Presently, most economists feel that the size of unreported economy would be close to 40 per cent of GDP. A parallel economy will be created in the country and hence, governance will be ineffective to a large extent. Demonetization of high denomination currency worth Rs 1, and Rs 5, and Rs 10, was again attempted in Gupta made a guess estimate of black income for three particular years, i.
But unfortunately, all these measures are introduced in India half-heartedly, and thus the grip of parallel economy is gradually being strengthened. Practice speech before friends or mirror You can use information from both sections for paragraph writing too.
Most of the offenders use all their money and influence and go scot free whenever they are caught. Till recently bitcoins were also considered to be a source of funding of black money as it provides a safe platform for investors with handsome returns from its value appreciation.
This increase of wealth in the hands of few persons has encouraged more black money, black marketing, smuggling etc. Decision making by these are again monitored by political bosses. One of the worst consequences of black-money and tax-evasion-is their pernicious effect on the moral fiber of our society which puts a premium on dishonesty and shatters the faith of the common man in the dignity of honest labour and lawful living.
This would ultimately distort the product-mix and raised the production of non-essential consumption at the cost of commodities of mass consumption. In the second form it is illegal and is not exposed for taxation. The government is mulling for a dual strategy in the form of framing policies to bring back the illicit money stashed abroad and also making domestic laws stringent to locate and identify the black money in India.
In spite of agricultural sector offering a safe shelter to concealed incomes, the sector continues to remain outside the tax net due to lake of political will to reverse the system. They purchase political bosses and control the strings of the Government.
But what exactly is Black money. In order to make the taxes more productive, the Government has been reducing the peak rate of personal income tax from It is the result of hoarding, smuggling, tax evasion and dealing in immovable property for which the consideration is paid in black.
During the post- reform period, liberalisation has helped big industrial houses in hiding their incomes and their outflow of funds to tax havens. Hence it is called black money. How is black money generated in an economy. Chopra prepared a series of estimates of black money where it increased from Rs crore 6.
They bribe Government officers and lead them to corruption and dishonesty. Till Augustnotes worth crore was demonetized. Tax rates should be such as may encourage the tax payers to pay taxes gladly.
People either fail to report their tax to the authorities by virtue of ignorance or intentionally to avoid paying tax which is otherwise termed as tax evasion. You may wonder; but if cash change hands without proper transaction accounting, the money involved is black money!. Black money, also described as tainted money, has seeped into every walk of life and is posing a great threat to the stability of our real economy.
The most unfortunate aspect is that it has come to be accepted as normal fact of life. Black money refers to unaccounted money that is untraceable and has no legitimate source though which it was earned.
It does not reflect in any income tax returns or asset declaration statements. An Essay on Black Money in India for Students, Youth and Kids Black Money is an unaccounted money, may be acquired illegally or means of illegal ways.
The black money is hidden in various forms such as, bonds, securities, shares, benami accounts, cash amounts, and other forms of wealth. Essay on Black money is about the money obtained by an individual or an organization illegally, by any unfair means or by not paying taxes probably.
Essay On Black Money. Black money is hot topic of common debate in the country now. This article explains in easily understandable way the various aspects of black money, starting with defining black money, generation of black money.
2. Essay on the Estimates of Black Money in India. In India, the extent of black money is quite significant. In the mean time, various attempts have been made for the estimation of black money .Essay on black money