black money and its sources, hawala system, top scams in india

1. BLACK MONEY IN INDIA

2. SCOPE
CONCLUSION
BLACK MONEY
TOP 10 SCAMS IN INDIA
MOVEMENT OF BLACK MONEY
SOME MAJOR SCAMS
SCAMS YET TO PROBE
SOURCES OF BLACK MONEY

3. • Income tax slab for domestic companies for FY
2015-16(AY 2016-17)
• If you are registered as a company, the income
tax slab rates do not apply to you. Domestic
companies are taxed at 30% on their total
income. A 5% surcharge is payable if income is
more than Rs 1 crore but less than Rs 10 crore. If
total income is more than Rs 10 crore, 10%
surcharge is applicable.
•

4. Nature Tax Rate
Short term capital gains from assets (Other
than shares & mutual funds)
At Income Tax Slab rates listed above
Long term capital gains from assets (Other
than shares & mutual funds)
20%
Short term capital gains on shares and
equity mutual funds
15%
Long term capital gains on shares and
equity mutual funds
NIL
Short term capital gains on debt mutual
funds
At Income Tax Slab rates listed above
Long term capital gains on debt mutual
funds
At 20% with indexation
Some incomes are taxed at special rates
Although total income is taxable at income tax slab rates mentioned above. Some incomes are taxed at special
rates.

5. How to calculate income tax from income tax slabs?
This example explains how to apply tax slabs to calculate income tax for
FY 2015-16(AY 2016-17).
Rohit has a total taxable income of Rs 8,00,000. This income
has been calculated by including income from all sources
such as salary, rental income and interest income.
Deductions under section 80 have also been reduced. Rohit wants to know
his tax dues for FY 2015-16.

6. Income Slab Tax Rate Tax calculation
Income up to Rs
2,50,000
No tax
Income from Rs
2,50,000 – Rs 5,00,000
10% (Rs 5,00,000 – Rs
2,50,000)
Rs 25,000
Income from Rs
5,00,000 – 10,00,000
20% (Rs 8,00,000 – Rs
5,00,000)
Rs 60,000
Income more than Rs
10,00,000
30% nil
Tax Rs 85,000
Cess 3% of Rs 85,000 Rs 2,550
Total tax in FY 2015-16
(AY 2016-17)
Rs 87,550

7. Black money is:
The currency used in ‘black economy’.
The proceeds, usually received in cash, from
underground economic activity.
Earned through illegal activity and, as such, is not taxed.
What is ‘Black Money’?
Fact: Once the huge amount of black money and property comes back to India , the
entire foreign debt can be repaid in 24 hours.

8. SOURCES OF
BLACK
MONEY
Drug
trafficking
False Income
Statement
Gambling
Terrorism
PiracyKidnapping
Weapons
trading
Undervaluation
of Assets
Selling stolen
goods
Sources of ‘Black Money’

9. To be at a safer side the recipients of the black
money moves their black income by using the
following two sources:
 By HAWALA system.
 Depositing in SWISS BANK.
Movement of ‘Black Money’
Fact: If the surplus amount after retaining the black money is invested, the amount
of interest earned will be more than the annual budget of the Central government.

10. Hawala:
 Also known as ”Hundi”.
 Origins in classical Islamic law
 An informal value transfer system
 Based on the performance and honour of a huge
network of money brokers.
 No promissory instrument
Hawala System
Fact: After retaining black money even if all the taxes are abolished, then also the
Central government will be able to maintain the country very comfortably.

11. SWISS BANK
CONFIDENCE
DISCRETION
SECURITY

12.  1854 - Swiss Bank Corporation(SBC).
 3rd largest in Switzerland with over 300 billion
CHF(Converted Swiss Francs) of assets and 11.7
billion CHF of equity.
 1998 - SBC merged with UBS, the largest bank in
Europe and the 2nd largest bank in the world.
SWISS BANK
Fact: If the black money is retained the Government will have enough money to run
the country for 30 years.

13. A scam is an
illegal trick,
usually with the
purpose of
getting money
from people or
avoiding
paying tax.
SCAM

14. COALGATE SCAM
2G SCAM
RAILWAY SCAM
IPL SCAM
COMMONWEALTH SCAM
SATYAM SCAM
HAWALA SCANDAL
CASH FOR VOTE SCANDAL
OIL FOR FOOD SCAM
U.P. FOOD GRAIN SCAM
TAJ CORRIDOR SCANDAL
U.P.NRHM SCAM
STAMP PAPER SCAM
CHIT FUND SCAM
KARNATAKA WAKF BOARD SCAM
ADARSH HOUSING SOCIETY SCAM
LIC HOUSING LOAN SCAM
BIHAR FLOOD RELIEF SCAM
COBBLER SCANDAL
JEAP SCAM
BOFORS SCAM
CRB SCAM
SUGAR BOARD SCAM
SAURASHTRA SCAM
HOME TRADE SCAM

15. OVER 250 SCAMS HAVE OCCURRED SINCE
1947.
Rs. 910,603,234,300,000, which is equal to USD
20.23 trillion HAS BEEN LOST.

17. TH
A.RAJA
(FORMER TELECOM MINISTER)

18. WHATLED TO THE SCAM?
The frequencies were allotted in the year 2008 at prices
supposed to be in the year 2001.
2008
350
MILLION
2001
4 MILLION
The 2G Licenses were issued to the
companies at THROWAWAY PRICES leading
to undervaluation.
Rs. 1.76 Lakh Crore LOST.

19. Suresh Kalmadi
Chairman, CWG Organising Committee

20. BUDGET FOR THE CWG
ESTIMATED
BUDGET
(2003)
FINAL BUDGET
(2010)
1620 Crores 11,500 Crores
Rs.11,500crore excluded non -sports-related
infrastructure development. Just the cost of
construction of five Games venues by Central
Public Works Department had escalated by over
Rs 1,110crore than the original sanctioned
amount.
“Mummy , I won’t open
my eyes Get my
surprise!”

21. Rs.8000 CRORES DEAD AND BURIED

22. THE IPL SCAM
YEAR 2010
Key Accused

23. Lalit Modi and Shashi Tharur were accused of selling the
teams to the franchisees from whom they had received
some extra money which was not going to be put in to
the team or the welfare of the board.
Tharoor was asked to resign from his post in the
government.
“I shall seek my revenge! For now,
sayonara.” (2010)
Returns to the Union Cabinet in
2012 as Minister of Human
Resource Development.

24. SCAMS YET TO
PROBED

26. SAB ‘THEEK HAI’

27. Consequences of ‘Black Money’
Poverty.
Inflation.
Reduces Development.
Illegal transfer of funds from India to other
countries.
Fact: In India more than 450 million people live below the poverty line.

28.  High rates of taxes by the govt.
 Simplify/Rationalize tax laws.
 Use technology for economic intelligence.
 Co-ordination with other countries.
 Stringent laws to curb money laundering/corruption.
 Creation of awareness among students on the evil of black
money.
 Regulation on election spendings and donation to political
parties/ organizations.
Measures to be taken to reduce ‘Black Money’
Fact: If the black money is retained the Government will have enough money to run
the country for 30 years.

29.  Black money has created a big black hole
in Indian economy & the entire burden is
beared by the common people of India.
To stop corruption which creates black money,
we the people of India have to come forward
to fight against corruption.
CONCLUSIONS