Paragraph on Black Money: Black money refers to illegal money obtained through unscrupulous measures and not declared for tax purposes. In short, people who possess black money do not pay taxes for them, making it unaccounted for and illegitimate. It is commonly found among dishonest workers or people in the business.
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Paragraph On Black Money – 100 Words for Classes 1, 2, 3 Kids
Black money is the money that is unrecorded in the tax department and concealed from the tax administrator by the owner of that money. In India, black money mainly aids and funds the black market that is a centre of fraudulent and illegal activities.
The amount of black money that people of India deposit in off-shore banks is uncountable. The latest reports in March 2018 suggest that the total cash that India has in foreign banks is more than 300 crores. Black money is on the increase in India due to the corruption in the system that fails to give strict punishment to the offenders. We can only hope that in the years to come, we can establish an efficient method for such issues.
Paragraph On Black Money – 150 Words for Classes 4, 5 Children
Possession of black money is illegal and technically punishable by law. However, the increased corruption and bribery among the officials have let loose a lot of criminals in this issue. Black money is unrecorded money and for which the owner does not pay tax. It is a heinous crime and deserves strict punishments.
The most common source of black money is underground economic activities or the black market. Such actions are aided by smugglers, drug dealers, and wimps. Prostitution, selling of drugs, and other illegal businesses are done under the table, and the money transacted is not recorded. This causes a leak in the country’s economy and affects the overall financial state of the country.
Shops that sell items without providing bills also make black money as they do not pay taxes for the sales that have no record. Systematic bribery is also mostly responsible for such acts. Thus, the country’s economy is put at stake by such disloyal people.
Paragraph On Black Money – 200 Words for Classes 6, 7, 8 Students
Black money is a severe problem in almost every nation. In addition to the harsh economic issues caused by the deposition of black money, there is also the moral aspect that we cannot ignore. Sacrificing one’s conscience and morality to meet his selfish ends is a sign of anti-social behavior and should not be encouraged in any given situation.
Black money has far-reaching effects on a country’s economy. The large amounts of money that do not get registered in the tax department leads to a loss in the revenue received by the government from the public. This revenue is used to boost policy making, and development plans for the nation and a stalemate in such situations severely affect the country. Moreover, such lump-sum amounts of money rarely enter the entire banking channel. This leads to the stifling of the economy as these amounts remain concealed, and the banks fail to use it to boost small-time business people and entrepreneurs.
Black money also leads to many inaccuracies in the country’s economy. No nation can count the exact amount of black money present in the system. Such unreported amounts cannot be calculated as the Gross National Product or Gross Domestic Product, leading to inaccuracies and problems in policymaking. A sound system is needed very soon to sort out such issues.
Paragraph On Black Money – 250 to 300 Words for Classes 9, 10, 11, 12 And Competitive Exams Students
Black Money has severe effects on a country’s economy. It can be reduced in several ways, but very few of them are long-lasting. For example, demonetization in India under the current government was a step to reduce black money. 500 and 1000 rupee notes were demonetized, and thus, it was expected that black money would be flushed out of the system. However, the policy was a 96% failure, and all learned economists criticized such a decision.
It is tough to free the country of black money because of the multiple ways present to launder black money. The most common is the Hawala System by which dealers transact cash without any paperwork or written records, across the world. Individual countries also allow anonymous depositions, which are again illegal and harmful.
Over the years, a lot of measures were suggested to reduce black money. Even in Colonial India, certain committees like the 1936 Ayers Committee was set up to deal with black money and increase tax collection for the government. The committee sought to help honest workers who paid their taxes regularly and punish frauds and questionable ones.
In the present scenario, every citizen must reduce the flow of back money—such amounts fund terror-provoking activities. The entire prostitution circle runs on black money, thereby destroying thousands of young girls every year. One should neither deal in black money nor allow such injustice to go unchecked. An effective way to ensure that black money is reduced in the country is by providing that you collect the bill from the shopkeepers every time you buy something. This will prevent sales from going unrecorded, and thus he would have to pay his taxes.
Black Money is a severe problem in our society and must be eradicated with the utmost urgency.
FAQ’s on Paragraph on Black Money
What are the sources of black money?
Black markets are the most significant source of black money transactions. Besides that, corruption and increased bribery in almost every profession are also much responsible for such acts.
What is money, laundering?
Black money can be laundered into white money by multiple means. Some people engage in inter-continental depositions under anonymous identity while others engage in underground activities.
What is the situation of black money in India?
India has a large amount of black money in the system, and according to recent reports, the deposition India makes in foreign banks have surpassed 300 crores.
How can black money be reduced?
The primary step to eradicate black money is by reducing bribery among government officials who do not give strict punishment to the offenders to fulfill their selfish needs.