The black magic of Black money
What we see with time? The progress, growth, success, technology, science and a huge sum of innovation and improvisations is what which can be seen as a whole. But as we all know every coin has two sides as a whole. So let’s see the other side of this progress, innovation and improvisations. The other side is nothing but the evils which are prevalent in our society like corruption, black Money etc, which is the result of greed, sloth, gluttony.
Essay on Black Money
We are observing huge transformation in the face of India. With the concepts of Digital India and Make in India, it has already shown its potential to the competing nations. But what makes it lag behind are the metrics that every Indian talks about are very few yet powerful. No wonder they’re black money, corruption, etc. We now discuss about the top most evil of India, Black Money. What is black money? Black money is the money which is obtained by an individual or an organization illegally, by any unfair means or by not paying taxes probably. Coming to the India, the amount of these evils are increasing every passing day. If you take a look at the idea of black money reserved in the Swiss Bank, then the recent statistics show that US$1.06 trillion is held there illegally as a whole in those banks. Therefore we can get an idea how far spread is the concept of corruption leading to.
Black Money In INDIA
There can be a list of four major reasons for which we can see what is the reason for which black money is moving its reign far off its sphere-
- The fraud tax laws– The increase in the tax laws make the chances for the black money inflation even more. An income of 50,000 can levy on the taxes but just assume even a cab driver earns around 300 INR daily and if we assume him working for 30 days a week, then even he exceeds the limit of the prescribed tax. Can a middle class person actually go for it?
- Excise Duty- What does it signify? It signifies different tax duty charges on similarly oriented products. Take the example of cigarette and textile goods? They have an excise duty charge which differs from each other, this causes economic invasion and again leads to the emergence of the blank money collections.
- Quota system- This is one of the systems which majority are aware of, the biggest instance of the quota system which we see at our day to day life is, the import, export and foreign quota which are often seen sold at a premium every time.
- Scarcity- This is synonymous to that of black marketing which is more a common vocabulary which is used most probably at a regular basis. The example is hiking or stalk-holding different commodities like kerosene, oil and stuff, which increase the price of the item in the market due to the unavailability which is made by the people for the collection of black money.
Impact Of Black Money On Indian Economy
There can be some major points which shake the Indian economy and the societal foreground as a whole. The following points are enlisted below-
- The government goes through a severe loss in the evasion of the tax and tax revenue on account of black money generation.
- RBI is incapable of strict policies which causes a huge setback to the Indian economy as well as estimates of black money in the system are also quite vacillating to depend on.
- This illegal money also helps funding the terrorists and anti-socials which again hamper the society.
- The root of corruption is black money and the strand which gets benefit from it is the politicians.
Now let’s see how black money can be converted into white money
Convert Black Money Into White
- Charity formulation– This is one of the techniques which is used up by many people, for converting the black money into white. If you are investing your money into charity organizations then your black money can be converted into white as there is no taxation or duty charges on it.
- Cash income from profession- if one can show that the income of his profession is paid by cash medium then the person doesn’t need to pay any service tax and can therefore convert the money.
- Agricultural Income- This is the third one, if one can show that there is an agricultural income which is coming up from his part then no need to go for the charges of duty and other mandate taxes.
- Plots- In form of real estate, one can convert black money into white easily.
How To Control Black Money
There are three major measures for controlling black money-
- A proper police and judiciary which will look out for offences like black money, corruption and help in the proper progress of the nation.
- The government should keep a record of everyone’s income as a whole to get an estimate which can be kept recorded as well.
- All purchases like land and commercial stuffs should be under the surveillance of the IT officials.
Every system has its pros and cons, being a responsible citizen; one should always keep in mind to serve the best responsibility to the country. The taxes are the catalyst for development and awareness should be the virtue of every citizen.