Black Money  A darker side of Economy

Dr. Liza Jain

Volume : VI, Issue : III, March - 2016

Black Money A darker side of Economy

Dr. Liza Jain

Abstract :

 The consequence of continuous expansion of black economy in India is not only a matter of contraction of government revenue but it has a multidimensional implications. It is also an issue of misuse of public fund. The crisis of black economy in India is really mind–blowing. It leads to the misdirection of precious national resources, worsen the income distribution, corrupted our political system, transfer the financial resources of foreign countries such as Swiss Banks, strengthen the okers of law, restrict to formulate right policies and actual strength of the country and most importantly it discourage the honest practices in each and every section of social and political life. It has worsened the income–distribution in the country, salaried class pay taxes honestly because they cannot hide their income and the people in business or in professions hold more disposable income through tax–evasion practices. The government officials who hold the key positions in the various departments also earn black money through ibe. As far as the Indian efforts are concern in this regard, Double Taxation Agreements with other countries are taking place. Treaty with Switzerland has also been signed and negotiations have completed with 10 tax heavens. India has also joined global efforts in various ways. Crores of taxes are being collected through various actions. Transfer pricing and other roots of tax evasion practices. But these success are drop in the ocean and demanding wide–ranged reforms and most importantly the strong political will. The proposed DTC and GST are good efforts but the draft and the hurdles of effective implementation both would not be as effective as required for the acute, problem of black money