The real devil of our nation is “Black money” is earned through illegal activity and, as such, is not taxed. Recipients of black money must hide it, spend it only in the underground economy, or attempt to give it the appearance of legitimacy through illegal money laundering and corruptions. Before come to the point of corruption, we have to think about causes of corruption and also what are the results of corruption. This happens from root level to higher level. From root level, the barrier between regular money and black money is gradually increased because there is no limit for corruption in higher levels. It is pity to be like that in developing countries. In recent news, our country has the position in corruption between seventy and eighty. However, some persons till now identify this problem in our country to alert the people against this evil.
Main Sources of Black Money:
2. Illegal Business
3. Hidden Income
Corruption in India is a major issue and adversely affects its economy. Corruption may include many activities including bribery and embezzlement. Government, or 'political', corruption occurs when an office-holder or other governmental employee acts in an official capacity for his or her own personal gain. Total corruption amount from 1948 to 2012 is approx. 199 trillion rupees. (3.5 trillion dollars)
Laws for anti-corruption:
1. The Prevention of Corruption Act, 1988
2. Prevention of Money Laundering Act, 2002
Illegal business is like smuggling, gambling, betting, etc. Gambling is the wagering of money or something of material value on an event with an uncertain outcome with the primary intent of winning additional money and/or material goods. Smuggling is the illegal transportation of goods or persons, such as out of a building, into a prison, or across an international border, in violation of applicable laws or other regulations. Betting is the activity of predicting results and placing a wager on the outcome.
The "Hidden Economy" consists of those economic activities that circumvent the institutional rules that define the reporting requirements of government statistical agencies. Hidden money as black has a huge impact on worsening the income distribution system thereby sabotaging the fixed income class placing them in the lower rung of their income ladder who genuinely pay taxes though a few of them in dulge in corrupt activities such as getting bribes, commissions, compensation, gifts, et c.
Who are all save black money in Foreign Banks?
1. Corruption in various ministries generally misusing the minister posts to take privile ge of favoring for themselves or for members of the family or other considerations gainful for them. 2. Corruptions by the state and central government officials through agents and in the form of indirect gifts. A huge hoarding for black money is in politics and election campaigns by political parties. 3. Transactions in real estate business in which dealings of crores of money required and only small amount is being shown in white, right from the registration of the document, market value, underestimation, difference between original value and registered value multiplicatively. 4. Investments in assets like gold, silver and antique collections whereas no records maintained. 5. Amusement get-togethers and extravagantly pay-out parties by business magnets showing inappropriate accounting.
6. The most important arena being the film industry where crores of money hidden as black money.
7. Realizations from agrarian produce by the landlords that benefit from exemption of taxable income in which no need of record required.
8. Importation of luxury cars from abroad by evading excise and customs duty. Hawala transactions that have gone unnoticed.
9. Binami and overseas investments...