What is black moneyo Black money may be defined as the money that is generated by activities that are kept secret in the sense that these are not reported to the authorities. As this money is also not accounted to the fiscal authorities i.e. the taxes are not paid on this money. White money is that money which is shownin relevant accounts and tax paid ,if due
SOURCES OF GENERATION OF BLACK MONEYo Beginning of the evilo Tax structureo Control and licensing systemo Donation to political partieso Ineffective enforcement of tax lawso Generation of black money in the public sector
Black money in Swiss bankso The total amount of black money deposited in foreign banks by Indians is unknown, but one estimate by R Vaidyanathan, a Professor of Finance, estimated the total at over Rs 7,280,000 Croreso While official numbers are not available, Swiss banking officials have said that the largest depositors of illegal foreign money in Switzerland are Indian
Indian Black money stasticsIf go into the deeper statistics of Indianblack money which has proof it looks likethis: Year Black money 1990-2000 4.1lak crores 2006-2007 9.6lak crores Present 15lak crores
(contd….)o The shown above statistics are the black money which is in Switzerland.o This way Indian black money are stored in almost 40 other countries.o Recent survey shows that as much as 50lak crores black money crossed the borders of India in last 5 years.
Impact of black moneyo Leads to misdirection of precious national resourceso Worsened income distributiono Big sized unreported segment of the economyo Transfer of funds from India to foreign countrieso New black money culture in business worldo Corruption in the society Last but not the least…….o Corruption of the entire political scenario
BLACK MONEY :CANCEROUS GROWTHWITHIN GLOBAL ECONOMY
Proposal to prevent Black moneyThe following Government institutes have beenapproved in March, 2011 for conducting separatestudies on black money:o National Institute of Public Finance and Policy(NIPFP);o National Institute of Financial Management(NIFM); ando National Council of Applied Economic Research (NCAER).
(contd…..)Government has formulated a five pronged strategy totackle the menace of black money which is as below:o Joining the global crusade against black money,o Creating an appropriate legislative framework,o Setting up institutions for dealing with illicit Funds,o Developing systems for implementation (new manpower policy); ando Imparting skills to the manpower for effective action (constant training for skill development).
If Black Money is brought back in Indiao Some surveys show that the black money which went out of India in last 2 years is as much as 13 times of India’s debts.o If the total black money is brought back to India then we can do many wonders such as:- we can clear India’s debt in one go.o we can clear the poor farmers of their debts. world class roads can be laid all over India.o We can get relief from the power shortage.o We can see that every house in the country with current.o We can have water supply for all the rural areaso We can construct planned houses for 10 crore peopleo We can distribute 4 crore to 6 lakh villages for their development
Conclusiono In a book written by an Indian Mr.Arun Kumar, said that the black money is around 40% of the Indian GDP.o The Indian GDP is around Rs 61,64,000 crore that means the black money is around Rs 25,00,000 crore.o If the black money is declared legal and shown in the books of accounts then the 30% of it will be taken as tax so as much as Rs 7,50,000 crore will come as revenue.o That will more than the total tax collection for the year. 2009-10 which stands at Rs 6,41,000 croreo But it is not legal so none is going to declare it as legal because they will be behind bars.o If it has to happen this should be another movie.
Referenceso Wikipedia.o Research done by Mr. Arun Kumar.o http://www.financialexpress.com/news/story /126853/o www.google.com
Thank You Ashu Agrawal(11115018)Dasharath Kumar Saini(11115024)