What is BLACK MONEY??

Black Money has no standardized definition If money breaks laws in its origin, movement, or use, and is not reported for tax purposes, it falls within the category of black money. To simplify black money is money derived from corruption and illegal ways such as drug trafficking, smuggling, etc. Synonyms black income, underground income, dirty money, black wealth, number do ka paisa etc.

Sources of Black Money

1. Crime forgery, sexual exploitation and prostituiton, securities fraud, trafficking etc. 2. Corruption bribery and theft by those holding public office 3. Business- attempt to evade taxes, hiding transactions from audit trail, under-reporting revenues etc.

Some facts
Developing countries have more black money as there exists: De-regulated market High cash availability but no monitoring Opportunities for leakage Low level of literacy reduces penetration of banking sector