Convertibility of Black Money to White Money (Against) Group 8_B P Sudhindra Reddy Amit Chheda

Introduction What is ‘Black Money’ Causes of Black Money Consequences of the Black Money Controlling the Black Money

What is ‘Black Money’

Causes of Black Money

Consequences of the Black Money

Controlling the Black Money

What is Black Money? Black money is essentially the currency used in ‘black economy’. Black, shadow, underground, unobserved, unofficial, subterranean, unrecorded, informal, irregular, second, twilight, parallel – are all the synonyms used for the ‘shadow economy’. ‘market based production of goods and services, whether legal or illegal, that escape detection in the official estimates of GDP’

Black money is essentially the currency used in ‘black economy’.

Black, shadow, underground, unobserved, unofficial, subterranean, unrecorded, informal, irregular, second, twilight, parallel – are all the synonyms used for the ‘shadow economy’.

‘market based production of goods and services, whether legal or illegal, that escape detection in the official estimates of GDP’

Causes of Black Money Corrupt Politicians & Bureaucrats Complex Tax Structure Intensity of Regulations Criminal Activities Inefficient & Corrupt I.T. & Vigilance Dept. Declining Morale to Pay Taxes

Corrupt Politicians & Bureaucrats

Complex Tax Structure

Intensity of Regulations

Criminal Activities

Inefficient & Corrupt I.T. & Vigilance Dept.

Declining Morale to Pay Taxes

Consequences of Black Money Decrease in Govt. Revenues Decrease in quality & quantity of Public Goods & Services Higher Taxes & Inflation Difficulty in Monetary & Fiscal Policy Formulation Increase in Criminal Activities

Decrease in Govt. Revenues

Decrease in quality & quantity of Public Goods & Services

Higher Taxes & Inflation

Difficulty in Monetary & Fiscal Policy Formulation

Increase in Criminal Activities

Controlling the Black Money Conversion from Black to White Mauritius Route Amnesty Schemes (VDIS) Demonetising Higher Denomination Currency Special Bonds

Conversion from Black to White

Mauritius Route

Amnesty Schemes (VDIS)

Demonetising Higher Denomination Currency

Special Bonds

Controlling the Black Money Prevention of Black Money Proper Tax Structure (GST, VAT) Simple Rules & Regulations Use of e-Money More Banking Transactions Use of PAN & Identity Proofs Efficient & Powerful I.T. & Vigilance Dept. Awareness of Benefits of Tax Payment

Prevention of Black Money

Proper Tax Structure (GST, VAT)

Simple Rules & Regulations

Use of e-Money

More Banking Transactions

Use of PAN & Identity Proofs

Efficient & Powerful I.T. & Vigilance Dept.

Awareness of Benefits of Tax Payment

Conclusion Conversion of Black Money to White Money is a Short-term Symptom based Remedy, while the Prevention measures mentioned treat the Root Cause of the Black Money.

Conversion of Black Money to White Money is a Short-term Symptom based Remedy, while the Prevention measures mentioned treat the Root Cause of the Black Money.

Thank You!