Black Money - Meaning


In common parlance, black money can be defined as assets or resources that have neither been reported to the public authorities at the time of their generation nor disclosed at any point of time during their possession.
NIPFP in its report of 1985 defined ‘black income’ as ‘the aggregates of incomes which are taxable but not reported to the tax authorities’. Further, black incomes or unaccounted incomes are ‘the extent to which estimates of national income and output are biased downwards because of deliberate, false reporting of incomes, output and transactions for reasons of tax evasion, flouting of other economic controls and relative motives’.
Further the white paper on ‘black money’ published by the Ministry of Finance states that in addition to wealth earned through illegal means, the term black money would also include legal income that is concealed from public authorities:-
(i) to evade payment of taxes (income tax, excise duty, sales tax, stamp duty, etc);
(ii) to evade payment of other statutory contributions;
(ii) to evade compliance with the provisions of industrial laws such as the Industrial Dispute Act 1947, Minimum Wages Act 1948, Payment of Bonus Act 1936, Factories Act 1948, and Contract Labour (Regulation and Abolition) Act 1970; and / or
(iv) to evade compliance with other laws and administrative procedures.
Indian Economy
Black money is a cause of concern for the Indian economy and results in huge losses in tax revenues for the government. India is the fifth leading county among the developing nations in the world with total illicit financial flows of USD 344 billion from 2002 till 2011-12. 

Friday, 02nd Oct 2015, 10:51:33 AM

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