Let’s start with a very simple and a basic question. What is black money? Black money refers to undeclared earnings that may have been legally or illegally made, but have been hidden from the government so as to avoid paying tax on them. Although this is an issue plaguing our nation since the economic reforms during the early 90s it came to limelight with a number of scams involving politicians and popular personalities. For instance, Bofors scam, Coalgate and the biggest data leak- Panama Papers.
1. What would you do to understand a broad concept? Its simple, like many other, you would read up the Wikipedia page as its a) easy to understand and b) its the fastest. Well, we simply it even further for you! Here our Quickiepedia to understand Indian black money
1. “Black money”, “corruption”, “fraud”… These few words sadly have become an inevitable aspect of the Indian economy today! But, how did we reach here? Take a look
2. Anyways, why are people tempted to evade taxes and deposit it in safe havens abroad? Well, this problem has its roots in the past government policies.
3. Didn’t the government take steps to bring back the black money? Of course, they did! Results: Missed opportunities, both for the government and the tax evaders
4. Not just the government, this issue is also being dealt by special teams who keep a check on the economy and tax evaders.
5. Bringing back the black money is not that easy as it sounds. Here’s why, despite several attempts, it has been difficult to trace back the black money.
6. However, in 2016, the Center took a big step in an effort to fight black money. On November 8th, the Modi government banned the Rs. 500 and Rs. 1000 notes. Poof! Just like that, no warning.
8. How about understanding the biggest leak in the world just by glancing a picture? Take a look at our visual aid.
9. Just a year after these leaks, came another major data leak called the Paradise papers which exposed how the well-known personalities avoid paying taxes by setting offshore companies.