1 : coins issued as silver but containing a high alloy of base metal . 2 : income (as from a black market or from gambling) that is not reported to the government for tax purposes.
Why is it called black money?
In India, black money is funds earned on the black market, on which income and other taxes have not been paid . Also, the unaccounted money that is concealed from the tax administrator is called black money. ... The total amount of black money deposited in foreign banks by Indians is unknown.
What is means by black money?
What Is Black Money? 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.
What is black money for kids?
Black Money is the money on which income tax is not paid . This money is earned through corrupt practices and not declared fearing legal action. Black money is collected by corrupt officials, politicians, businessmen, criminals, smugglers and any other individual trying to evade taxation.
What is meant by Black Money Class 8?
An income which is not declared by a person or a group of persons in a nation is termed as black money. It is also termed as ‘illegitimate’ as it goes unrecognized for the tax declaration. It is a huge social and economic issue for India, hence important for the IAS Exam.
What is black money and its causes?
The increase in prices of commodities like petrol, etc. , in international market, increase in prices of commodities due to high increase in duties and taxes imposed by the government, conspicuous consumption indulged in by people with unaccounted money, diverting resources from production to speculation—all these cause ...
What is the other name of black money?
| dirty money black market income | blood money criminal proceeds | illegal gains illegal income | ill-gotten gains tainted money | tainted wealth |
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Is Black dollar real money?
The black money scam, sometimes also known as the “black dollar scam” or “wash wash scam”, is a scam where con artists attempt to fraudulently obtain money from a victim by convincing them that piles of banknote-sized paper are real currency that has been stained in a heist.
What are the effects of black money?
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.
Which is not cause of black money?
1. Prohibition causes black money. Certain activities are usually forbidden by law such as gambling , production of illicit liquor, smuggling, trafficking illegal drugs, lending at exorbitant interest charges, money lending without proper license etc.
How can we stop 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.
Who has written an essay black money and black economy?
D.K. Rangnekar’s estimate of black money showed an increase in the extent of black income in India from Rs 1,150 crore in 1961-62 to Rs 3,080 crore in 1969-70 which was 8.4 per cent of GNP.
What is the effect of black money on our economy in points?
The black money keeps circulating among the wealthy and creates more opportunities for them . (c) The infusion of unaccounted black money in the economy leads to higher inflation, which obviously hits the poor the most. It also increases the disparity between the rich and the poor.
What is white money?
white money. noun [ U ] /ˌwaɪt ˈmʌn.i/ us. /ˌwaɪt ˈmʌn.i / money that is earned legally, or on which the necessary tax is paid .
What is black money class 10?
Black money is the money that is unrecorded in the tax department and concealed from the tax administrator by the owner of that money. In India, black money mainly aids and funds the black market that is a centre of fraudulent and illegal activities.
What is the round tripping of money?
Round-tripping is the process where funds are returned after being transferred to an entity , shell company, financial instruments, location, or a person that have lower regulatory standards or obligations – giving the impression that the funds have derived from a clean source and thus completing a round trip.
