What is meant by black money

What is by black money

Black money refers to income or wealth that is not reported to the government for tax purposes. It is illegal to earn, hold, or use black money, which is often associated with criminal activities such as tax evasion, bribery, and money laundering. 

Black money is difficult to track and can be kept in various forms, including cash, real estate, and offshore accounts. Governments around the world have taken steps to combat black money, including implementing stricter laws and using advanced technology to detect and prevent its use.

Why is it called black money

Black money is money that is earned through illegal or illegitimate means, or money that is earned legally but not reported for tax purposes. 

It is called "black" because it is not recorded on the books and is therefore not subject to taxation. 

This means that the government does not know about the money, and the person or entity earning the money is able to evade paying taxes on it. Black money is often associated with corruption, tax evasion, and other forms of financial wrongdoing.

What are the types of black money

Black money refers to the income or wealth that is generated through illegal or illegitimate means, and is not reported to the government for tax purposes. There are many types of black money, including the following:

1. Income from illegal activities

This includes income from activities such as drug trafficking, human trafficking, and other illicit activities.

2. Income from legal activities

This includes income that is earned through legal means, but not reported to the government for tax purposes. For example, a business owner may not report all of their income in order to avoid paying taxes.

3. Hidden assets

This includes wealth that is not disclosed to the government, such as money or assets that are kept in secret bank accounts or invested in offshore companies.

4. Undeclared gifts or inheritance

This includes gifts or inheritances that are not disclosed to the government for tax purposes.

5. Bribes and kickbacks

This includes payments made to individuals in exchange for favors or to influence decisions.

6. Money laundering

This refers to the process of disguising the proceeds of illegal activities as legitimate funds, through a series of transactions that make it difficult to trace the origin of the money.