Black money in india
Meaning and Concept
Generally, the money which not actually paid is called as a black money.
Black money is both an economic and a social problem. It is perceived as a problem because it directly effects the sociological environment of the society like social inequalities, social deprivations. It is an underground economy or an unofficial economy that consequence of the economic policies of the government and has damaging effects on country’s economy and nation’s planning development.
There are some problem like poverty affects those who are poor, unemployment affects those who are unemployed, alcoholism and drug abuse affect those who consume them, black money is a problem which does not affect those who have black money but it affects the common man in society.
For example: if a person purchases second-hand car and pays Rs. 90,000 for it out of white money but gets a receipt of only Rs. 60,000, the balance of Rs. 30,000 becomes black money for the seller.
Measurement of black money
It is not easy to calculate the magnitude of black money in any society. The economists of different countries like United States, the United Kingdom, Norway, Sweden and Italy adopted different measures but could not estimate the amount involved in black money.
Some countires used questionnaire method for eliciting answers from persons whether they had participated in illegal activities as buyers or sellers.
Italy used the finding out the difference between the size of the labour-force officially reported and actually employed estimate the underground economy. This enabled the authorities to determine productivity in the underground sector.
Control of black money
Government has several schemes which is announced many times in this the offering opportunities to bring black money overboard. Some of these schemes are: introducing the scheme of special Bearer Bonds, demonetizing high denomination currency notes, stringent raids, and scheme of voluntary disclosures.