BLACK MONEY

What Does Black Money Mean?

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.

Court casesIn January 2011 the Supreme Court of India asked why the names of those who have stashed money in the Liechtenstein Bank have not been disclosed.[2] The court argued that the government should be more forthcoming in releasing all available information on what it called a "mind-boggling" amount of money that is believed to be held illegally in foreign banks.

Is this possible?e india will bring back swiss bank black money?

Is this possible india can bring back swiss bank black money. will indian political people do something for that.even before some days wikileaks get out list of 15 to 20 peoples but it couldnt effect any one

What are the ways indian government can bring back the BLACK MONEY?do you really believe what RAMDEV baba says" by issuing ordinance is possible to bring black money back from swissbank. if its possible then why so many countries failed to do it?

if swissbank is main funds store for terrorism and crimes why there is no international laws and treaties which can put ban on such banks and banking laws??•6 months ago •(Tiebreaker)

Total black money in India?According to a Swiss Banking Association Report (2006), "India has more black money than the rest of the world combined." India has stashed almost $1.456 billion in black money in Swiss banks. 

Black money is income obtained by illegal activities that is not reported to the government to avoid income taxes. 

.

How much Indian black money in Swiss Banks ?

Challenging the parties to issue a statement on their stand on black money parked in Swiss banks, he said: “According to one estimate, money ranging from Rs.50-75 lakh crore ($1-1.5 trillion) is parked in Swiss bank accounts. So I dare them (political parties) to reply to this question. If they can’t reply that means the ranks of these parties are all dishonest, corrupt and they themselves have money deposited in Swiss bank accounts.”

2011 Indian anti-corruption movement

The 2011 Indian anti-corruption movement is a series of ongoing demonstrations and protests across India intended to establish strong legislation and enforcement against endemic political corruption.[5] The movement has gained momentum since April 5, 2011, when anti-corruption activist Anna Hazare began his now-famous hunger strike at Jantar Mantar in New Delhi

Reasons of Black Money• The people do not pay their taxes. Even if they pay taxes, they are not in correct proportions to their incomes. The tax evasions by corporate and industrial houses are to the tune of billions of rupees. These firms are able to make clever usage of the income tax rules and hence, they save taxes. This tax evasion leads to the generation of black money.

• The black money is earned by gifts, hawala transactions and illegal foreign exchange deals. These deals are not scrutinized by the government simply because these are without any documentary evidences

• The procedures of over billing or under billing and exaggeration of expenses lead to the generation of black money. The sale and purchase of assets also lead to the generation of black money.

The value of the property is shown to be very low in the documents whereas it has a very high value in the actual transaction. The businesses are conducted in other sectors of economy in the same manner and non-billed amounts are retained by the individuals and the firms as black money.

Problems of Black MoneyEven after 40 years of independence, our country is faced with poverty and numerous economic ills. Even though socialistic pattern of society has been accepted in the constitution, our country is far away from socialism and her economy is in the grip of private enterprises. In fact, India has unlicensed economy which has given birth to corruption, inflation and black money.

 The poor man has been becoming poorer and rich richer just because of the economic ills like inflation and black money.

There are many sources of black money. Chief among these areas follows:

• Import licenses.• Selling of cement licenses, steel and iron.• Transactions in heavy industries.• Transaction in public sector.• Release of industrial licenses.• Government and commercial transactions.• Forged and face currency.

There are many causes of converting genuine profit into black money. The chief among them are:

• Inflation.• General and mid-term election.• Tax evasion.

The Government May take the following steps to stop black money:

1.     Centralised Invoicing System for all the Corporate and Non Corporate Body's. 

2.     Centralised Income Tax Assessment verification System. 

3.     The Government should fix the market price for sale of properties: 

a.     There should not be a difference in market price and the government price for properties.  This will help us to avoid black money transaction for the differential amount of market price and the Government price. Hence, the government can generate more revenue through tax collection. 

b.     We should develop a Computerized System for all the properties.  And the purchase and sale of properties should be done through that system using PAN as identification number for tracking the properties held by individual, organizations and corporate bodies. 

c.      We should fix the maximum value and acres of land that can be held by an individual, organization or company. 

THANK YOU