It is the policy of the government which particularly aim for nation's development. So, we are already short of 1. Economics, Indirect tax, Offshore company 55533 Words 162 Pages To begin the essay introduces the globalization process and how it has been applied in the Indian centrally planned economy. The population had grown to the brink of starvation. Conclusion Black money is big black hole in Indian economy. But on these occasions a few amount was tendered to Reserve Bank of India R.
This black money come into existence largely through tax-evasion. Please dont assume I am advocating corruption. So, if we look for the sources of corruption we automatically get the sources of Black Money. Not all decisions that are made in the business field are good ones. The politicians largely resort to industrialists and trading community for the help — the funds are raised in terms of black money. Demonstration Effect causes black money The conspicuous consumption and luxurious life style of black moneyed people have created a sort of demonstration effect on many others to inspire for such consumption patterns. Money laundering, Underground culture, Underground economy 1140 Words 4 Pages Black money or unaccounted money circulating in the parallel economy is a big menace to the economy.
How then would anyone in his or her right mind trade a tangible object like a new stereo or television. Deteriorate the General Moral Standards of the Society Black money is largely responsible for the deterioration of general moral standards of the society. It gives a great idea about what it is and how is it destroying India silently. The process of formalization Formalization means under the monitoring of the government. The business and regulatory environment is evolving and moving towards constant -improvement.
This form of money is known as black money. Similarly, demonetisation also exposed the entrenched web of shell companies and hawala transactions. It is essential to take steps to control black money because it adversely and negatively effects the growth, advancement, and development of the country. This huge black money which is slashed though in Swiss bank is 20% of Indian economy. Yes, it's the corruption that I'm talking about, the largest threat to any country's financial, political as well as social structure. An investigation by the International Consortium of Investigative Journalists made public in April revealed that the names of around 500 Indians were part of the leaked Panama Papers.
They either never maintain any books of account or also keep false accounts to be shown to the authorities. In the second phase, about 14,000 properties of more than Rs 1 crore each, where persons have not even filed income tax returns, were identified and put under investigation. If we have a simple form for filing income tax returns in which there shall be no inquiry about how the money came to the taxpayer. The scale of the operation can be gauged by the fact that cash deposits of Rs 3. We may not give or take bribes, pay our taxes religiously. It is the world's largest public corporation by revenue according to the 2008 Fortune Global 500. After the raids, wide publicity is usually given to the amount of money and other assets that are seized.
So this is the best example of black money and corruption. As the matter of fact, inflation is both the cause as well as consequence of the growth of black money in the Indian economy. Black money, by its very nature, is hard to estimate accurately; therefore the gains from demonetization of Rs 500 and Rs 1000 notes are also difficult to quantify. Our election laws and behavior of political parties are primarily responsible for this. India is a democratic country and is governed under a parliamentary system consisting.
This way so many other things like development of roads, repair works of highways etc also take so much time. Has the government formulated a plan to leverage this for longer term gains by expanding the income tax base? As a result in India richer are going richer and poor are going poor every day in India. So it widens the income gap in the society. In order to tackle black money, it is important to prevent generation of black money totally. Inflation effects economic growth and certainty, wages, unemployment, international competitiveness, exchange and interest rates amongst other things. Economic system, Economics, Economy 1262 Words 5 Pages Television, and its effects on the Indian population Ever since the advent of modern communication technology that has allowed people around the world to communicate ever so easily, the world itself seems like a smaller space.
A social shake up against black money An awareness against black money and consciousness about legal and punitive measures is an intangible positive effect of this demonetisation. It is in various forms like shares, bonds, securities, or other forms of instruments. There is enough evidence to show otherwise, to demonstrate the impact of demonetisation on the black economy has been significant. Inflation leads to black money The genesis of black money can also be found in the persistent inflation in the country, which has enhanced incentives and opportunities to earn such incomes. Prime cause for avoiding the tax is high level of taxation. In addition, the number of e-returns filed increased by 27.
Fiscal policy is an vital part of the economic framework of a country and so it is closely linked with its overall economic policy strategy. This essay has supporting facts that prove the economy is definitely not on the mend. When the black money grows faster, rich becomes richer and the poor become poorer. Thousands of crores of rupees which should have gone to the government coffers go to the personal accounts of black marketeers. This affects the overall the economic development process. The excess of money leads to purchase non- essential articles, which gives demonstration effect. Under-estimation A large underground economy and growth of black income lead to under-estimation of the true size and incorrect picture of the economy by the officially complied.