Introduction to Economics

In India, black money is funds earned on the black market, on which income and other taxes have not been paid. Also, the unaccounted money that is concealed from the tax administrator is called black money. The black money is accumulated by the criminals, smugglers, hoarders, tax-evaders and other anti-social elements of the society, who are not scared of the punishment given by the law for such crimes. Around 22000 crores of rupees are supposed to have been accumulated by the criminals for vested interests.

The total amount of black money deposited in foreign banks by Indians is unknown. Some reports claim a total of US$100.06 trillion is held illegally in Switzerland. Other reports, including those reported by the Swiss Bankers Association and the Government of Switzerland, claim these reports are false and fabricated, and the total amount held in all Swiss bank accounts by citizens of India is about US$2 billion. In February 2012, the director of India's Central Bureau of Investigation said that Indians have US$500 billion of illegal funds in foreign tax havens, more than any other country. In March 2012, the government of India clarified in its parliament that the CBI director's statement on $500 billion of illegal money was an estimate based on a statement made to India's Supreme Court in July 2011.

On 8 November 2016, in a sudden address to the nation, Prime Minister Narendra Modi announced that banknotes of ₹500 and ₹1000 would cease to be legal tender from midnight. He said this decision was taken to crack down on black money and corruption which is destroying the country. He also said that the process of cash circulation is directly related to corruption in his country impacting the lower classes of society.The number of income tax returns filed for 2016–17 grew by 25 percent to 2.82 crores (compared to growth rate of 9.9% in the previous year), and the advance tax collections during that period rose 41.8% over the one-year period, as more individuals filed their tax returns after demonetization.
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Tax Havens (in Hindi)

Smarath Singh

(Hindi) The Invisible Economy of India

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