A Study on Black Money: Causes and Consequenc...

A Study on Black Money: Causes and Consequences

Author Name : Dr. Ravikumar S M

ABSTRACT

The white Paper defines black money as ‘assets or resources that have neither been reported to the public authorities at the time of their generation nor disclosed at any point of time during their possession’. Black money can be generated through (i) illegal activities like crime, drug trade, terrorism and corruption or (ii) failing to pay dues to the public exchequer in one form or another.  In the second case, activities might be legal but the perpetrator may simply have failed to report the income generated to avoid paying tax. Due to the potential generation of black economy in India, health and education cannot be developed up to the mark. This paper made an attempt to overview of the black money, generation of black money, causes of black money and its consequences. This paper is prepared on the basis of secondary sources and it is in descriptive nature. The data has been collected from magazines and reports.

Keywords: Black money, generation, causes & consequences.