CAN SWIZ BLACK MONEY TAKE INDIA TO THE TOP

PRESENTED BY; Shiv Kumar II B.A

INTRODUCTIONBLACK MONEY AND WHITE MONEY THE CONCEPT…….

What is black money..?

Is it a money having black colure…?

What is white money…?

Is it a money having white colure..?

These question's seems to be silly…. But fact is a fact even some of my friends might know about the black money and white money……

Black money and white money

What is black money…..?

Well in the absence of clear cut definition in the literature of economic theory we can define it as

“Any income on which the taxes imposed by government or public authorities have not been paid”.

There is no uniform definition of black money in the literature or economic theory.

In economic literature we find different names and vogue references for black money.. Such as

unaccounted income. black income Dirty money black wealth underground wealth black economy parallel economy shadow economy ‘underground’ or ‘unofficial’ economy.

Such wealth may consist of income generated from legitimate activities or activities which are illegitimate per se, like smuggling, illicit trade in banned

substances, counterfeit currency, arms trafficking, terrorism, and corruption. For the purpose of this document, ‘black money’ can be defined as assets or resources that have neither been reported to the public authorities at the time of their generation nor disclosed at any point of time during their possession.

This definition of black money is in consonance with the definition used by the National Institute of Public Finance and Policy (NIPFP). In its 1985 report on Aspects of Black Economy, the NIPFP defined 'black income’ as ‘the aggregates of incomes which are taxable but not reported to the tax authorities'. Further, black incomes or unaccounted incomes are ‘the extent to which estimates of national income and output are biased downwards because of deliberate, false reporting of incomes, output and transactions for reasons of tax evasion, flouting of other economic controls and relative motives’.

Thus, in addition to wealth earned through illegal means, the term black money would also include…

legal income that is concealed from public authorities:

to evade payment of taxes (income tax, excise duty, sales tax, stamp duty, etc);

to evade payment of other statutory contributions;

to evade compliance with the provisions of industrial laws such as the Industrial Dispute Act

1947, Minimum Wages Act 1948, Payment of Bonus Act 1936, Factories Act 1948, and Contract

Labour (Regulation and Abolition) Act 1970; and / or

to evade compliance with other laws and administrative procedures

How money turns into black…..

TAX EVASION & TAX EVADINGTax evasionWhen a person reduces his total income by making

false claims or by with holding the information regarding his real income, so that his tax liability reduced is known as tax evasion.

Tax evasion is not only illegal it is immoral also

Tax evader reduces his taxable income by one or more of the following steps

Unrecorded salesClaiming bogus expenses, bad debts and lossesCharging personal expenses as business

expensesSubmission of bogus receipts for charitable

donations under section 80.c

Tax avoidance; tax avoidance is an art of reducing tax

liability without actually breaking the law. It is a method taking positive advantage of

loopholes in the law.

Indian Black Money in Swiss Bank ListWikiLeaks posted in the website that –

Indian money in Swiss Banks than any other nationality. We have proof regarding their names, amount and name of bank which we got from Rudolf Elmer. We have 2000 names in two discs, the major share is from India. The source of income is from project hedge, illegal share in stock market, drug deal, fake project. The deposits in Swiss Bank was started from early 70s.

Swiss banking association's report 2006

Top 5 account holding country

India $1,456 billions

Russia $470 billions

UK $390 billions

Ukraine $100 billions

China $96 billions

India has more money in Swiss bankRussia has 4 times lesser deposits Us is not even there in top 5

List of black money holders

Why Indian Government is not asking Swiss bank..??????!!!!!

The answer is simple…Government is working under the

influence of those politicians & industrialist who have huge deposits in Swiss banks .They cant expose their own people… ;-(

'Swiss black money can take India to the top'

Indian money stashed in the Swiss Bank has become a focal point of debate, especially after the Leader of Opposition and the Bharatiya Janata Party's prime ministerial candidate L K Advani raised the issue . If elected, the BJP had vowed to bring the black money back home. Though the Congress dismissed the idea, the Swiss bank issue  slowly became a hot election issue

Making fun of our selves

Conclusion India has all the potentials of

taking itself to the top But the potentiality is very safely

locked in SwissNow is left to you & me whether to protest Or to sit quite Or what else….. Lets decide …

Thank you

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