1) Black money refers to wealth that has not been reported to tax authorities and on which taxes have not been paid, while white money refers to legally obtained and declared wealth.
2) India has more money stashed in Swiss banks than any other country, estimated at $1.456 trillion according to a 2006 report. This black money comes from tax evasion, illegal activities, and undisclosed incomes and assets.
3) Retrieving the large amounts of Indian black money hidden in Swiss banks could significantly boost India's economy and development; however, the Indian government has been reluctant to fully pursue this money due to influence from politicians and businesspeople with deposits in Swiss accounts.
1. CAN SWIZ BLACK MONEY TAKE INDIA TO THE TOP
PRESENTED BY; Shiv Kumar II B.A
2. INTRODUCTION
BLACK MONEY AND WHITE MONEY THE CONCEPT…….
What is black money..?
Is it a money having black colure…?
What is white money…?
Is it a money having white colure..?
These question's seems to be silly…. But fact is a fact even some of my friends might know about the black
money and white money……
3. Black money and white money
What is black money…..?
Well in the absence of clear cut definition in the literature of economic theory we can define it as
“Any income on which the taxes imposed by government or public authorities have not been paid”.
There is no uniform definition of black money in the literature or economic theory.
In economic literature we find different names and vogue references for black money.. Such as
unaccounted income.
black income
Dirty money
black wealth
underground wealth
black economy
parallel economy
shadow economy
‘underground’ or ‘unofficial’ economy.
4. Such wealth may consist of income generated from legitimate activities or activities which
are illegitimate per se, like smuggling, illicit trade in banned substances, counterfeit
currency, arms trafficking, terrorism, and corruption. For the purpose of this document,
‘black money’ can be defined as assets or resources that have neither been reported to the
public authorities at the time of their generation nor disclosed at any point of time during
their possession.
This definition of black money is in consonance with the definition used by the National
Institute of Public Finance and Policy (NIPFP). In its 1985 report on Aspects of
Black Economy, the NIPFP defined 'black income’ as ‘the aggregates of incomes
which are taxable but not reported to the tax authorities'. Further, black incomes or
unaccounted incomes are ‘the extent to which estimates of national income and output are
biased downwards because of deliberate, false reporting of incomes, output and
transactions for reasons of tax evasion, flouting of other economic controls and relative
motives’.
5. Thus, in addition to wealth earned through illegal means, the
term black money would also include…
legal income that is concealed from public authorities:
to evade payment of taxes (income tax, excise duty, sales tax,
stamp duty, etc);
to evade payment of other statutory contributions;
to evade compliance with the provisions of industrial laws such as
the Industrial Dispute Act
1947, Minimum Wages Act 1948, Payment of Bonus Act
1936, Factories Act 1948, and Contract
Labour (Regulation and Abolition) Act 1970; and / or
to evade compliance with other laws and administrative
procedures
6. How money turns into black…..
TAX EVASION & TAX EVADING
Tax evasion
When a person reduces his total income by making false claims or by with
holding the information regarding his real income, so that his tax liability
reduced is known as tax evasion.
Tax evasion is not only illegal it is immoral also
Tax evader reduces his taxable income by one or more of the following steps
Unrecorded sales
Claiming bogus expenses, bad debts and losses
Charging personal expenses as business expenses
Submission of bogus receipts for charitable donations under section 80.c
7. Tax avoidance;
tax avoidance is an art of reducing tax liability without actually breaking
the law.
It is a method taking positive advantage of loopholes in the law.
8. Indian Black Money in Swiss Bank List
WikiLeaks posted in the website that – Indian money in
Swiss Banks than any other nationality. We have proof
regarding their names, amount and name of bank which
we got from Rudolf Elmer. We have 2000 names in two
discs, the major share is from India. The source of income
is from project hedge, illegal share in stock market, drug
deal, fake project. The deposits in Swiss Bank was started
from early 70s.
9. Swiss banking association's report 2006
Top 5 account holding country
India $1,456 billions
Russia $470 billions
UK $390 billions
Ukraine $100 billions
China $96 billions
India has more money in Swiss bank
Russia has 4 times lesser deposits
Us is not even there in top 5
13. The answer is simple…
Government is working under the influence of those politicians &
industrialist who have huge deposits in Swiss banks .They cant
expose their own people… ;-(
14.
15. 'Swiss black money can take India to the top'
Indian money stashed in the Swiss Bank has become a
focal point of debate, especially after the Leader of
Opposition and the Bharatiya Janata Party's prime
ministerial candidate L K Advani raised the issue . If
elected, the BJP had vowed to bring the black money
back home. Though the Congress dismissed the
idea, the Swiss bank issue slowly became a hot election
issue
17. Conclusion
India has all the potentials of taking itself to the top
But the potentiality is very safely locked in Swiss
Now is left to you & me
whether to protest
Or to sit quite
Or what else…..
Lets decide …