BLACK MONEY

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 shown in relevant
accounts and tax paid ,if due
BLACK MONEY IN SWISS BANK
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 Crores.
While official numbers are not available,
Swiss banking officials have said that the
largest depositors of illegal foreign money
in Switzerland are Indian.
If go into the deeper statistics of Indian black
money which has proof it looks like this:
YEAR
BLACK MONEY
1990-2000
4.1 LAKH CRORES
2006-2007
9.6 LAKH CRORES
PRESENT
15 LAKH CRORES
(Contd)
The shown above statistics are the
black money which is in Switzerland.
This way Indian black money are
stored in almost 40 other countries.
Recent survey shows that as much as 50
lac crores black money crossed the
borders of India in last 5 years.
Black market

High rate of tax

Inflation

Elections in democracy
black money Leads to misdirection of precious
national resources
Worsened income distribution Big sized
unreported segment of the economy
Transfer of funds from India to foreign
countries
New black money culture in business world
Corruption in the society
Last but not the least.
Corruption of the entire political scenario
Some surveys show that the black money
which went out of India in last 2 years is
as much as 13 times of Indias debts
If the total black money is brought back to
India then we can do many wonders such
as:- we can clear Indias debt in one go
we can clear the poor farmers of their
debts. world class roads can be laid all
over India
We can get relief from the power
shortage
(Contd)
We can see that every house in the
country with current.
We can have water supply for all the rural
areas.
We can construct planned houses for 10
crore people.
We can distribute 4 crore to 6 lak villages
for their development.


The following Government institutes have
been approved in March, 2011 for
conducting separate studies on black
money
National Institute of Public Finance and
Policy(NIPFP)
National Institute of Financial
Management(NIFM); and
National Council of Applied Economic
Research (NCAER).

(contd..)
Government has formulated a five pronged
strategy to tackle the menace of black money
which is as below:
Joining the global crusade against black money,
Creating an appropriate legislative framework,
Setting up institutions for dealing with illicit
Funds,
Developing systems for implementation (new
manpower policy); and
Imparting skills to the manpower for effective
action (constant training for skill development).
In a book written by an Indian Mr.Arun Kumar,
said that the black money is around 40% of the
Indian GDP.
The Indian GDP is around Rs 61,64,000 crore that
means the black money is around Rs 25,00,000 crore.
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.
That will more than the total tax collection for the
year. 2009-10 which stands at Rs 6,41,000 crore
But it is not legal so none is going to declare it as
legal because they will be behind bars
MONEY HAI.. TO HONEY HAI



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