WHAT IS INDIAN BLACK ECONOMY & BLACK MONEY

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                      Looking after the current scenario, Black money is currently one of the most discussed political and economic issues in India.

There was a news from Kannouj (UP) , On 22 Dec. 2021, Income Tax Officers raid upon a perfume seller businessman Piyush jain. They found the huge amount of cash , gold and silver in his house. The surprising fact about the news is that there was 4-5 Money counting machine's are used for counting the cash and it takes 2-3 days to complete the counting.

      Income tax department gives the official data of all the seize wealth as , they found 194.5 Crore Rupees Cash , 23 Kg of Gold valued of 11.5 Crore , 250 Kg of silver and 600Kg of sandal Wood oil valued as 6Crore rupees. 

         After this news , there is a big excitement among the people about the issue , and waiting for what happened next.But Unfortunately , All the ( Black Money ) wealth that were seized by Income tax department were returned to the businessman with converting the whole black money to White. The reason behind this is simple , the political power .  As piyush Jain belongs to the BJP party , he used to give big donation to BJP party in UP .( This is not my opinion , this is said By Akhilesh yadav the samajvaadi party spoke person and Some  related proofs) . Officially , it is said that ,The complete wealth that were seized by income tax department is generated by collection of business by businessman and the gold , Silver were given by grand parents . Piyush Jain paid all the required tax and penalty for the tax with GST to income tax department .  But , this is not the constitutional  way to deal with the issue.  

            Though he paid all the tax now , but before this raid all the wealth were unknown consider as  black money , we couldn't save this huge money in our house , we must save this in bank accounts .  But there is tax provision on the wealth . To save this tax , many people illegally save all money in their house.

            The money without tax is considered as black money . But how this Black Money generates ? Let's see ,

#How the black money generates ?

                    Black Money is generated by many ways. It generated by illegal activities, tax envasion , direct cash payment instead of Bank involvement , to save tax. The un acounted income from properties , land and  other assets produced black money. The huge amount of money that is earned by 

the rich people were not deposited to the banks they are spent in buying big properties , lands , houses , Donation to political parties , or they are sent to tax heaven countries like london , Switzerland in shell companies and the Banks like Swiss National Bank , Switzerland. 

                    India's black economy is estimated to 62%  of total GDP , about 1050 lakh crore rupees , which can make whole indian population 7 times wealthier than now. We will become second largest economy if this black money is added for growth in india.

# PM Modi's Demonitisation Effect :- 

When the BJP came to power in 2014, among its promises was the recovery of black money from tax havens abroad countries  and Swiss Bank and the promise to deposit Rs 15 lakh in every Indian’s bank account. In November 2016, when Prime Minister Narendra Modi announced the demonetisation of high currency notes like 500/- rs and 1000/-Rs , he said he had taken the step primarily to fight black money.

                   Do you think that it really works now. As we seen at the beginning the huge amount of black money is still producing in india. It was not explained why & when high currency notes were being demonetised – as they were the choice of currency for black income generators to hoard – currency of even higher denomination (the Rs 2000 note) was being introduced. Surely, this would be even easier to hoard? 

                 Recent data From Swiss National Bank reveals that the amount of money from

Indian Accounts is increased to 183% . In 2019 it is 6625 Crore rupees and in 2020 it increases to 20700 Crore Rupees which is 183% than 2019 , Even in the Covid pandemic year. When all the entire country is facing the Covid crisis , who are this account holders whose income is increased to that much. 

                    The PM of india promised us about the revealing the account holders name and bringing the black money back. But till now  Three reports were given by Swiss bank to india but still no action is taken against it. 

This shows the failure of use of political position. Many people says that , the account holders are belongs to both the opposition and leading party. So, thats why the silence upon this issue is .

 Thus, since demonetisation was announced, unemployment has risen, investment has fallen, banks are facing difficulties and the crisis in agriculture has been aggravated in spite of a good monsoon. All this leads to the emergence of recessionary conditions in the economy.That we are facing today.

                So , what should be the government  do regarding this issue ?. Let's see ...

# Solutions to overcome Black Money :- 

1. First of all the government should make ,. CBI , ED , Income Tax Department Independent  bodies  free free political involvement and minister's power.

 2. Corporation tax should be on gross profit and not net so that the costs incurred cannot be manipulated to show lower incomes  .

3.There should be wealth taxation on all forms of wealth, gift tax and estate duty. As we seen at the beginning the gold , silver is gifted by grandparents to perfume seller.

4.. The Most crucial to bring under RTI all political parties, the judiciary, the prime minister and the chief ministers’ offices. If it is extended to them, it would make the politician and the executive accountable and their functioning transparent so that, unlike at present, they cannot subvert the law deliberately.

5. The last and most important point is that every common man should be aware about the transparency in politics and executive peoples.That's our fundamental right.

    

      This are the some solutions on this issue which will really helps to overcome their black economy and black money in India. You can suggest your opinions and solutions on this.

#Conclusions :- 

                  Black Money is making india un stable. It helps to make rich people more rich and poor people more people.we should pay attention on this.

  I Hope the blog is informative for you. Dont hesitate to review and comment the blog. Your suggestions are always welcome..!!

Thank You..!!

{ ALL THIS DATA IS TAKEN FROM NATIONAL AND INTERNATIONAL NEWS PAPERS AND REPORTS , I'M NOT IN FAVOUR OF ANY PARTY TO GIVE MY BIAS OPINIONS}