Essay On Black Money In English: The accumulation of income earned unlawfully is essentially what black money is. It is not declared in order to pay taxes. In India, the problem of black money is pervasive, and recently the government has developed strict methods to deal with it. Black money is defined as money obtained illegally. Despite the detrimental effects they have on society, people have been using a variety of methods to generate black money for decades.
Essay On Black Money In English For Student And Children
Essay On Black Money In English (100 Words)
Black money is an ongoing issue in our nation. Here, it has become normal practise to try to evade taxes by hiding money obtained through different illicit means from the government.
Other challenges in India have emerged as a result of the black money problem. One of the main problems brought on by black money is false information about the nation’s economy. The nation’s fiscal structure is significantly impacted by tax evasion because the government is totally reliant on tax collection. In addition to having an effect on the country as a whole, this also has an effect on the general population because it is the root cause of social and economic inequality in the nation.
Essay On Black Money In English (200 Words)
There are several reasons why black money builds up. According to reports, the main cause is the high tax rate the government has established. The various excise duty rates, the price control policy, the real estate market, inflation, and the quota system are other factors. People hunt for numerous strategies to deceive the authorities about their income and get away with it.
Sensitization is required to the need to end this behaviour. Even though the government is making efforts to solve this issue, it will not be successful if the public doesn’t support it.
Black market profits are essentially what constitute black money. It is the amount that is kept secret from the government in order to avoid paying taxes on it. Black money buildup has a number of detrimental effects on society, with economic and social inequality being the most significant.
Sources of Illegal Funds
The question is still open: why isn’t the government doing more to combat black money since there are so many detrimental effects? The government is working to rid the nation of black money, but the causes of this bad behaviour are more powerful than the measures put in place to eradicate them.
Essay On Black Money In English (300 Words)
It goes without saying that the key to making black money is tax evasion, specifically of the income tax, state taxes, company tax, excise duty, and customs duty. Here are some examples of alternative black money sources:
- Black income from exports: Companies that export their products are major producers of black income.
- Black market: Another source of black money is the merchandise sold there.
- Market for stocks: The majority of the profit made on the stock market is unaccounted for. This unreported profit is what causes the black market to grow.
- Illegal commissions: Many public servants receive unauthorised payments from the general populace in exchange for providing specific services. The money made in this way is only negative.
- Bribes: A lot of bribery occurs at many levels in both the public and private sectors, which also helps to create black money.
- Scams: Politicians and other powerful individuals are probably a significant source of black money.
Conclusion
Since many years ago, our society has struggled with the issue of black money. It is past time for the government to devise a workable strategy to rid the nation of this evil custom.
One of the biggest issues facing our nation now is black money. This is one of the roots of the economic imbalance that leads to social inequality, which is the basis of a number of issues in the nation. There are many things that contribute to this issue. A few of these are the high tax rate, rising standard of living, inflation, various excise duty rates, and the real estate market.
Solutions to the Black Money Issue
Essay On Black Money In English (400 Words)
Taxes are not paid on black money, which is defined as such. To maintain its tax-exempt status, it is kept secret from the government. People employ a variety of strategies to conceal their assets and avoid paying taxes. Here is a look at a few of these as well as the recent efforts made by the government to address this issue.
Deposits of Black Money in Foreign Countries
It is well known that many prominent businessmen, ministers, and celebrities have money stored in foreign banks. Although the total amount that Indians have put in foreign banks is unknown, some publications indicate that an approximation of that amount has been deposited by Indians in their international accounts. One of these allegations suggests that a staggering US$1.06 trillion is stashed in Switzerland, and another alleges that US$2 billion is stashed in Indians’ Swizz bank accounts. It has also been asserted that Indians have illegal assets worth roughly $500 billion in international tax havens.
Demonetization: A Step Towards the Elimination of Black Money
The Modi administration just made a significant move to solve the black money issue. Narendra Modi stated that the 500 and 1000 rupee notes would no longer be legal tender as of midnight on November 8th, 2016. The 9th and 10th of November saw the closure of all ATMs nationwide. These were replenished with new 500 rupee notes and 2000 rupee notes. The old notes were taken out of circulation entirely. According to the government, taking this measure would reduce the growth of black money as well as the unlawful enterprises and activities that are supported by it.
For several weeks, the regular operation of numerous sectors was disturbed by the sudden announcement of the withdrawal of old currency notes and the paucity of replacement ones. Public opinion on the decision was divided. Many people criticised the decision, claiming that it has simply made the public more inconvenienced. It has drawn flak for being ill-thought-out. In several sections of the nation, the public gathered to demonstrate against the administration.
The administration asserted that the action would improve society as a whole, and that long-term effects would be apparent to the public.
Demonetization’s effects
Here is a look at the advantages of demonetization, despite the fact that the decision was widely opposed and criticised:
This action by the Modi government significantly reduced the amount of black money.
The political parties and ministers who used illegal money for fundraising and other purposes were taken aback. It stopped the unethical tactics that these parties employed to win over voters.
Essay On Black Money In English (500 Words)
People receive income from a variety of sources without disclosing it to the government so they can avoid paying taxes on it. Black money refers to the accumulation of funds on which no taxes have been paid. Our nation has always struggled with the issue of black money. There are numerous elements that go into this issue.
What Leads to Black Money?
Here are some of the different factors that contribute to India’s black money issue:
High Taxes
In India, the tax rate is relatively high. People are being compelled to use unlawful means of wealth growth due to the increase in taxes and tariffs. The country’s maximum tax-free income is only Rs. 25,000. These days, with the cost of living so high, this amount is insufficient to maintain a household. This is the reason why more successful professionals often conceal their income in order to avoid paying taxes.
Policy of Price Control
The government regulates the cost of some goods, such as fertiliser, sugar, cement, etc., through its price control policy. The policy is strict and does not adapt to market ups and downs. Private stores and manufacturers profit from this policy, which generates illicit funds.
Rates of Different Excise Duties
Based on the calibre of the products, the government has set various excise duty rates. Manufacturers occasionally degrade a product to avoid paying a higher amount of excise duty. This causes the creation of illegal currency.
Real Estate Dealings
Large sums of money change hands in real estate deals. Real estate deals are how people amass black money. Buying real estate at a discount and then selling it when the value rises has turned into a successful business that generates a lot of black money.
Limit System
A certain quota for export, import, and foreign exchange has been established by the government. Despite being designed for the general welfare, this is frequently abused to amass illicit funds.
Inflation
Black money is known to have several reasons, one of which is a high inflation rate.
Effects of illicit money
Black money has detrimental social repercussions in addition to having a severe economic influence on the nation. It causes economic inequality in the nation, which is unquestionably the root of social inequality. The wealthiest in this country are getting richer while the poor are getting poorer as a result of such actions. Social injustice makes individuals angry and encourages criminal activity including robbery, bribery, and other offences.
Tax evasion also entails that funds that may have aided in the government’s development and expansion did not do so. The government wouldn’t be able to start new programmes for national growth and the elevation of the underprivileged if it didn’t receive enough money.
In comparison to nations where a significant quantity of black money has accumulated, those with religious tax compliance are significantly better off.
Conclusion
To address the problem of black money, the government has taken a number of actions. Demonetization was one of the most recent and significant moves made in this regard.