What is the effect of black money on our economy?

Growth of the black economy causes regressive distribution of income in the society. When the black money grows faster, rich becomes richer and the poor become poorer. By way of concentration of income and wealth in few hands, the black money widens the gap between the rich and the poor.

What are the causes of black money?

10 Main Causes of Black Money in India – Explained!

• Unrealistic Tax Laws and Tax Frauds: The increase in taxes and duties compels some people to evade them.
• Different Rates of Excise Duty:
• Control Policy:
• Quota System:
• Scarcity:
• Inflation:
• Elections in a Democratic System and Political Funding:
• Real Estate Transaction:

How do you convert black money to white in a trust?

Formulation of Trust & doing Charity Another popular way used by people to convert black money to white is by formulating trust for social cause. They make executive bodies of own people in trust sometimes illiterate people like driver cook etc. They donate black money to this trust as charity to convert black money.

How does black money cause social consequences?

Black money includes all funds earned through illegal activity and otherwise legal income that is not recorded for tax purposes. Higher amounts of black money in the economy often lead to increased corruption. On the other hand, black money can reduce the negative impact of oppressive laws.

How much has black money recovered?

Under the supervision of the SIT the I-T department has recovered just around Rs 3,500 crore from some of the account holders and expected to recover a total of 10000 crore till March 2015.

What is Sec 51 of Income Tax Act?

SEC – 51: ADVANCE MONEY FORFEITED Where any capital asset was on any previous occasion the subject matter of negotiations for its transfer, and any advance money or other money received is forfeited by the assessee, then the amount so forfeited shall be deducted from The cost for which the asset was acquired or The …