The money that’s attain able and hoarded by dishonest and unfair means that and unbroken secretly to evade taxes is named black-money. It becomes black as a result of no taxes are a unit paid thereon. No tax area unit paid thereon as a result of it’s attained by dishonest and unfair means that. Cash turned to be black if the taxes due on it area unit evaded. The huge quantity of black cash in our country has created a similar economy.
Continuing generation and accumulation of black cash poses a grave threat to our economy and is probably going to threaten the terrible security and survival of the country. It is the supply and at a similar times reason behind graft, corruption and therefore the dishonorable of social and ethical values. There are varying factors to blame for the existence, origin and the flourishing state of the parallel economy of black cash. It originates with the mix of cash and power. With black cash anyone may be bought or bribed, essential commodities may be preserved and hoarded, healthy competition may be driven out and honest men and public servants may be blackmailed.
Some measure may be suggested for restricting the generation and extend of parallel economy of black money.
- Lowering of tax rates so that tax illusion becomes unnecessary. Tendency to avoid tax creeps in when tax rates are high.
- Leaders and persons in a position should folder a return of their assets and incomes which should be subjected to scrutiny by a special agency created for this purpose.
- Controls, permits, and licenses should be reduced to a minimum. It’s needed they should be made available without under the table payments.
- Wanchoo committee recommended agriculture income should also be subjected to income tax as other incomes.
- Govt. Should subsidies election expenditure of political.
- It’s important to registration fees in relation to property and other real estate should be lowered.
- All laws of taxes should be revised so as to eliminate get-outs.
- If possible Heavy capital gains tax should be lowered.
- Punishment must be given to those who are dealing with black-marketing, profiteering, and smuggling.
(United world school of business)