This resource talks about the major sources of black money in India. It throws some light on the various activities of people that earn them Black money in India. The Swiss banks are filled with Indian money and nearly 1.4 trillion of it is from India.
Black Money has become a real cause of concern and taking into account the present protests by famous personalities like Anna Hazare and Baba Ramdev, the issue of Black money in Swiss Banks has become the hottest topic.
Black money in India is a major concern for the country's economy, the amount of Indian Black money is really a fact to worry taking into account the sources that have possibly led to the accumulation of such heavy heaps of undisclosed and illegal money are still functional.
Here I'm descriptively mentioning some of the major sources of Black money and even though the list of such avenues is endless I've tried to take into account every possible major source.
Indian Politics and Black money
Politics maybe regarded as one of the major source of black money in India. Our beloved and highly respected Politicians leave no stone unturned to earn them the maximum possible profits and these not so tiny profits are quite a boost in the total amount of Black money in India.
Politicians of today earn money in nearly each decision they make because most of these are bound to serve their masters, the business tycoons of their regions, who fund their parties from the beginning till the moment the politician is loyal to them and supports their demands. Even politicians among themselves play a dirty sport of rackets and frauds involving the tiniest to the mightiest part of the system all bought with money.
The monthly salaries are not enough for a person to buy for himself a 50 lac luxury car or a luxurious farm house at any hill station or any such item involving heavy investments. All this is done only by the use of Black Money and indeed after the exploitation of common people.
Hence politics plays a vital role in the survival of corruption as well as the Black Money in India.
Law and Black money in India
This is quite a controversial fact that no corruption is possible if there are watchmen for the same. I'm talking about the Law and judiciary of the country not at the highest level of Supreme Court but at lower levels.
Who is to check a person who has been recruited to check others?
People can't earn a single illegal penny as the Police department and the laws are fully functional and active but if this jinx is broken that means the culprit alone can't be blamed because a person supporting a criminal is himself a criminal.
The Police departments are controlled by the Politicians as well as the influential persons of an area and when their hands are tied, illegal activities take toll and
Black money is flown like water and earned at the same time by someone else. Complaints are taken care of at the local police stations only so how would any higher official come to know about any fraud being committed in his area. People earn huge profits and provide a little share of this profit with the law watch dogs to benefit all at the cost of the country's economy.
Industries and Black money in India
This might seem away from corruption but still it's too close to the entity Black money. The industry tycoons as well as the business giants are among the richest people of India but it isn't possible to stay at such heights with a clean methodology. There are rules for everyone in this country but still there is a crisis of rule followers in our country. The production of any industry is to be kept recorded and the data stored in the records and any deviation from the allotted range is considered worth penalising but still these industrialists fake the units produced as well as their profit stats and earn huge benefits much more than what the govt. stats tell about their financial conditions.
The root cause of this can also be traced to income tax. Earnings of each person is liable to pay tax payment if they are above a threshold level but when they are in lacs and more as for these industry owners, they have to pay heavy taxes so all the money that they deposit without the knowledge of govt is Black money and in a way country's loss.
Gambling and black money in India
Gambling, betting, match fixing etc have become quite common particularly in the big cities where people have enough to take risks that may even return more than double the amounts invested. This sort of gambling of money seems attractive for middle class people and they happily invest thousands of rupees but the bigger fish invest in lacs and so they ensure that the side they are on gains and this leads to scams like Match fixing etc. A large amount of money is generated from this addictive play of gambling all in the name of luck while everything is pre-decided and the common man just falls prey ending up wasting his hard earned income.
Corruption in govt offices and black money
Mostly it is seen that those in a permanent job take benefits of their position while tampering with govt records and stuff just for some extra cash. This practice is the most commonly found thing particularly in the govt sector where employs mainly the clerks or accountants taking care of the financial department do lot of moderations in the govt funds and they are paid equally well to get them into the list of corrupt people and declare their money earned as Black money. And as this is a large scale practice one can imagine how much govt money is directly converted into black money in India each day.
Black money in Rural India
Mostly we all consider taking into account the top level known people. What we fail to identify is that the root cause or the origin of most of the illegally traded land and property is from the rurals only. The country side is where most of the open land is available for use. Rural areas in India account for a major share in the country's Map and in many cases, we find the assets such as large fragments of land etc undertaken by bribing the rural landlords and the Zamindars only. Rich people spend quite less as compared to the real worth of a land while the landlords deal for these quite happily once their pockets are filled.
Henceforth, people get land registered in their name illegally and later sell it at very high margins earning lacs in the form of black money. While that land could have been a govt asset, it gets transformed into a private possession of lots of Black money.
This situation has been there since long and still the govt fails to either control the landlords who indulge in land-grabbing kind of activities to harvest the share of the poor and the weak people while they themselves live a luxurious life. One can take into account the land records of cities and towns quite easily due to lesser open and unclaimed land but talking of the country lands, as of now govt doesn't seem to be capable enough to prevent misuse of its own land.
Talking of the rural areas, one can't stop venturing into the govt offices like Panchayats. Government of India provides loads of funds under various schemes to develop the villages, the roads, markets etc. Obviously, these funds aren't so small and are used less in development of villages but more in increasing the bank balance. These funds are divided so greatly among the various hierarchical levels that till it reaches the final destination the villagers are left to suffer while everyone else enjoys his share of the cake of black money.
Its worth mentioning that drops if accumulated can result in the formation of a sea. Similarly, a small exploitation if not prevented can act as a boost to person for indulging into much more higher levels of corruption. This way the exploitation of govt money reaches to such extent that it is then directly converted into pocket money by the rich and powerful people.
Income Tax Department and Black Money in India
Its an irony yet a fact that the foremost threat to any anti-corruption drive aimed at recovering black money from any part of the country is from the ones recruited for such a purpose. It's the Income tax department of india which is to ensure that peple pay accurate taxes as per their earnings. People often indulge in many mal practices aimed at ensuring that the least tax is paid by them.
What are the drawbacks? Who is at loss?
Govt comes to know about the real earnings of the people only on the basis of the taxes they pay and the income corresponding to these taxes is what we recognise as White money or legal earning. While paying less taxes means that some portion of your income is hidden from the govt thereby declaring it as black money that fills the pocket of the rich class while drilling holes in the funds of govt kept to ensure the development of roads, infrastructure etc.
Who is to suffer? Of course the common lot, the public and the most irritating thing is that despite acknowledging the fact that a person is earning Black money, he gets a reputed status, he's treated as a social symbol. People look forw2ard for these cheats with respect even though these are the only ones responsible for hell lots of problems like unemployment, under developed regions, etc.
Now when someone wonders how come the Swiss Banks are filled to the Brim by Indian money, the answer isn't so difficult to crack.
Literally, there are infinite sources in India to earn black money and as long as the people continue accumulating the same fearlessly, the development of the country is really a cause of concern.
In today's world, everyone has a price if you want any work of yours to be completed. People don't give taxes and spend lots of money to ensure the safety of their large bank balances or black money. Govt offices are more than 90 corrupt because people earn more than double their salaries in the form of under the table earnings adding up to the Black money in India.
Politicians of our country are remarkably honest and they will do anything to check that the levels of black money in their regions or areas don't degrade in any manner. Even the basic commodities of life and consumer products like kerosene, ration items etc aren't spared. Adulteration is on a rise and I fear someday even pure poison won't be available even. Black marketing, piracies, tampering with govt records and funds, land grabbing, etc have become a habit of people. People have not even spared the religious traditions and they exploit the pockets of common man giving rise to superstitions among the most educated masses even filling their deep pockets with cheated money earned by fooling others.
Most of the saints, babas and types have chosen this field as a profession after being lured by the amount of black money this job can give them along with the comforts of a luxurious life.
Hence to sum up as a conclusion I would just like to say that removing or decreasing the black money in India isn't a day's child play because each new day ten new methods of earning black money in India crop up. Nowadays even the internet is filled with frauds and scams giving a great platform for people to earn Black money.
So, steps need to be taken in a proper manner to curb this menace but first of the system needs to be reformed
Black Money has become a real cause of concern and taking into account the present protests by famous personalities like Anna Hazare and Baba Ramdev, the issue of Black money in Swiss Banks has become the hottest topic.
Black money in India is a major concern for the country's economy, the amount of Indian Black money is really a fact to worry taking into account the sources that have possibly led to the accumulation of such heavy heaps of undisclosed and illegal money are still functional.
Here I'm descriptively mentioning some of the major sources of Black money and even though the list of such avenues is endless I've tried to take into account every possible major source.
Indian Politics and Black money
Politics maybe regarded as one of the major source of black money in India. Our beloved and highly respected Politicians leave no stone unturned to earn them the maximum possible profits and these not so tiny profits are quite a boost in the total amount of Black money in India.
Politicians of today earn money in nearly each decision they make because most of these are bound to serve their masters, the business tycoons of their regions, who fund their parties from the beginning till the moment the politician is loyal to them and supports their demands. Even politicians among themselves play a dirty sport of rackets and frauds involving the tiniest to the mightiest part of the system all bought with money.
The monthly salaries are not enough for a person to buy for himself a 50 lac luxury car or a luxurious farm house at any hill station or any such item involving heavy investments. All this is done only by the use of Black Money and indeed after the exploitation of common people.
Hence politics plays a vital role in the survival of corruption as well as the Black Money in India.
Law and Black money in India
This is quite a controversial fact that no corruption is possible if there are watchmen for the same. I'm talking about the Law and judiciary of the country not at the highest level of Supreme Court but at lower levels.
Who is to check a person who has been recruited to check others?
People can't earn a single illegal penny as the Police department and the laws are fully functional and active but if this jinx is broken that means the culprit alone can't be blamed because a person supporting a criminal is himself a criminal.
The Police departments are controlled by the Politicians as well as the influential persons of an area and when their hands are tied, illegal activities take toll and
Black money is flown like water and earned at the same time by someone else. Complaints are taken care of at the local police stations only so how would any higher official come to know about any fraud being committed in his area. People earn huge profits and provide a little share of this profit with the law watch dogs to benefit all at the cost of the country's economy.
Industries and Black money in India
This might seem away from corruption but still it's too close to the entity Black money. The industry tycoons as well as the business giants are among the richest people of India but it isn't possible to stay at such heights with a clean methodology. There are rules for everyone in this country but still there is a crisis of rule followers in our country. The production of any industry is to be kept recorded and the data stored in the records and any deviation from the allotted range is considered worth penalising but still these industrialists fake the units produced as well as their profit stats and earn huge benefits much more than what the govt. stats tell about their financial conditions.
The root cause of this can also be traced to income tax. Earnings of each person is liable to pay tax payment if they are above a threshold level but when they are in lacs and more as for these industry owners, they have to pay heavy taxes so all the money that they deposit without the knowledge of govt is Black money and in a way country's loss.
Gambling and black money in India
Gambling, betting, match fixing etc have become quite common particularly in the big cities where people have enough to take risks that may even return more than double the amounts invested. This sort of gambling of money seems attractive for middle class people and they happily invest thousands of rupees but the bigger fish invest in lacs and so they ensure that the side they are on gains and this leads to scams like Match fixing etc. A large amount of money is generated from this addictive play of gambling all in the name of luck while everything is pre-decided and the common man just falls prey ending up wasting his hard earned income.
Corruption in govt offices and black money
Mostly it is seen that those in a permanent job take benefits of their position while tampering with govt records and stuff just for some extra cash. This practice is the most commonly found thing particularly in the govt sector where employs mainly the clerks or accountants taking care of the financial department do lot of moderations in the govt funds and they are paid equally well to get them into the list of corrupt people and declare their money earned as Black money. And as this is a large scale practice one can imagine how much govt money is directly converted into black money in India each day.
Black money in Rural India
Mostly we all consider taking into account the top level known people. What we fail to identify is that the root cause or the origin of most of the illegally traded land and property is from the rurals only. The country side is where most of the open land is available for use. Rural areas in India account for a major share in the country's Map and in many cases, we find the assets such as large fragments of land etc undertaken by bribing the rural landlords and the Zamindars only. Rich people spend quite less as compared to the real worth of a land while the landlords deal for these quite happily once their pockets are filled.
Henceforth, people get land registered in their name illegally and later sell it at very high margins earning lacs in the form of black money. While that land could have been a govt asset, it gets transformed into a private possession of lots of Black money.
This situation has been there since long and still the govt fails to either control the landlords who indulge in land-grabbing kind of activities to harvest the share of the poor and the weak people while they themselves live a luxurious life. One can take into account the land records of cities and towns quite easily due to lesser open and unclaimed land but talking of the country lands, as of now govt doesn't seem to be capable enough to prevent misuse of its own land.
Talking of the rural areas, one can't stop venturing into the govt offices like Panchayats. Government of India provides loads of funds under various schemes to develop the villages, the roads, markets etc. Obviously, these funds aren't so small and are used less in development of villages but more in increasing the bank balance. These funds are divided so greatly among the various hierarchical levels that till it reaches the final destination the villagers are left to suffer while everyone else enjoys his share of the cake of black money.
Its worth mentioning that drops if accumulated can result in the formation of a sea. Similarly, a small exploitation if not prevented can act as a boost to person for indulging into much more higher levels of corruption. This way the exploitation of govt money reaches to such extent that it is then directly converted into pocket money by the rich and powerful people.
Income Tax Department and Black Money in India
Its an irony yet a fact that the foremost threat to any anti-corruption drive aimed at recovering black money from any part of the country is from the ones recruited for such a purpose. It's the Income tax department of india which is to ensure that peple pay accurate taxes as per their earnings. People often indulge in many mal practices aimed at ensuring that the least tax is paid by them.
What are the drawbacks? Who is at loss?
Govt comes to know about the real earnings of the people only on the basis of the taxes they pay and the income corresponding to these taxes is what we recognise as White money or legal earning. While paying less taxes means that some portion of your income is hidden from the govt thereby declaring it as black money that fills the pocket of the rich class while drilling holes in the funds of govt kept to ensure the development of roads, infrastructure etc.
Who is to suffer? Of course the common lot, the public and the most irritating thing is that despite acknowledging the fact that a person is earning Black money, he gets a reputed status, he's treated as a social symbol. People look forw2ard for these cheats with respect even though these are the only ones responsible for hell lots of problems like unemployment, under developed regions, etc.
Now when someone wonders how come the Swiss Banks are filled to the Brim by Indian money, the answer isn't so difficult to crack.
Literally, there are infinite sources in India to earn black money and as long as the people continue accumulating the same fearlessly, the development of the country is really a cause of concern.
In today's world, everyone has a price if you want any work of yours to be completed. People don't give taxes and spend lots of money to ensure the safety of their large bank balances or black money. Govt offices are more than 90 corrupt because people earn more than double their salaries in the form of under the table earnings adding up to the Black money in India.
Politicians of our country are remarkably honest and they will do anything to check that the levels of black money in their regions or areas don't degrade in any manner. Even the basic commodities of life and consumer products like kerosene, ration items etc aren't spared. Adulteration is on a rise and I fear someday even pure poison won't be available even. Black marketing, piracies, tampering with govt records and funds, land grabbing, etc have become a habit of people. People have not even spared the religious traditions and they exploit the pockets of common man giving rise to superstitions among the most educated masses even filling their deep pockets with cheated money earned by fooling others.
Most of the saints, babas and types have chosen this field as a profession after being lured by the amount of black money this job can give them along with the comforts of a luxurious life.
Hence to sum up as a conclusion I would just like to say that removing or decreasing the black money in India isn't a day's child play because each new day ten new methods of earning black money in India crop up. Nowadays even the internet is filled with frauds and scams giving a great platform for people to earn Black money.
So, steps need to be taken in a proper manner to curb this menace but first of the system needs to be reformed
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