| Topic : India's Mushrooming Black Economy.... |
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Finance & Accounts
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Activity:
251 views;
last activity : 07 06 2010 20:18:09 +0000
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Crippled Income Distribution System
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Transfer Of Funds To Outside
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Corrupt Professionals
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Vicious Circle of Corruption, Bureaucracy
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..Widening THE GAP......
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corrupt politicians
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1800 - 1500
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Black Money Idea from Rajiv Dikshit (Bharat Swabhiman)
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Running a parrel (illegal) economy .. Dangerous
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In more then 1 way, my view point is in relation to Finance Sector.
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It has enormously worsened the income-distribution, and has thereby undermined the fabric of the fixed income salary class finds itself ever be the lower rung of the income-ladder. They pay taxes. Quite a number among them, though not l the corrupt activities of getting bribes / commissions, etc. |
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Ya the crippled IDS is a major worry not only to a common man but also to black marketeers of money, the fact remains the black money control is a daunting task and possibly can never be achieved. A major Asia power in east is considered to be the most corrupt nation, its rising and rising as never before.
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Black money results in transfer of funds from India to foreign countries through clandestine channels. Such transfers are made possible by violations exchange regulations through the device of under – invoicing of exports and over-invoicing of imports thus finds itself in a paradoxical situation. |
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Very true Rashmi & Rajyalaxhmi, black money has corrupted the income system & is also the cause behind money going out of India. Besides that Black Money has also corrupted th professionals of this country. Black money requires for its protection, proliferation and expansion of a service organisation composed of muscle-men, touts and brokers to combat the forces of law and order on the one hand and on the other hand, there are income t ax advisers, or chartered accountants in the pay of black money operators. |
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Yeah i too agree. But we have to see that if steps are taken to solve this menace then it should be very clear where the taxes thus recovered by govt goes. Which means the underlying system have to be cured before, otherwise the pull of money will instigate more corruption leading to our fate left in the hands of corrupt politicians.
Indeed a huge debate !!!
swathi, i will agree with your comment.black money has corrupted the income system and state and central govt loose their revenues continuously every year.the state and central govt take concentration to control the black money.
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The major effect of Black Money on Indian economy is non stop corruption. All we know that person are not corrupt if the system is accurate or you can say corrupt system resulted corrupt professionals only. Black Money leads to vicious circle of corruption. And if corruption & bureaucracy is presence in system of any country then economy of that country can't progress in true manner. Due to Black Money, Distribution of Income is also affected. In India the major portion of population divided in only two parts; very poor and highly rich. Whereas progress of any country depends on high middle class group which is not enough as per Growing Indian Economy. |
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Economic stablity has an X-tremely important aspect ...of first stagnating THE GAP and then decreasing THE GAP b/w the richest and the poorest......Black money has free flow n we also know dat.... money makes money...then how come the gap is being decreased...this results in unstable economy....the present scenario is that....rich is becoming richest n the poor i getting poorest..... |
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ye hamare desh ka durbhagya hai ki desh(country)ko chalane wale politicians he aaj sabse jyada corrupt hai
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1800 - 1500 ... If people think, they are toll free numbers ... they
would be sadly mistaken. |
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OM Have you Guys Listen to Rajiv Dikshit (Rastriya Sachiv of Bharat Swabhiman Trust) Lectures regarding Black Money. His Ideas are vey Good regarding Black Money Economy. Pls. read the following article and comment on that regarding Black Money: http://bharat-swabhiman.com/en/report-on-swiss-bank-money/comment-page-1/#comment-1447 http://bharat-swabhiman.com/en/convert-black-money-circulating-in-the-economy-into-white-money/ |
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Since last fifity years or so ... a section of people is asking the Govt. to tackle the problem of Black Money. But the Govt. is not sincere enough. Meanwhile, in two seperate occassions, Govt allowed owners of black money to white wash their black money by "disclosures". But .. that was not sufficient for the owners. They partially surrendered. Actually they are the selfish people and dont care for the welbeing of country. Another aspect : Once black always black. The owners of black money tends to create more such money and other similar people join them makeing the system never ending. The holders of black money seldom keep such fund with a Bank. They manage their 'own Banking system', routes these fund from place to places, people to people by means of their own ( hundi or hawala .. ?), even use these for all un-ethical purposes. It is widely believed that from generation to generation some traders used to keep two accounting books, one for the I.Tax people. Previously they used to take 'help' of Chartered Accountants to guide them and in present-day senerio more than one CAs are available in their own family .. !! Such money is the 'darling' for some political parties. They take (black) donations from the owners to run their party and election campaigns. It was proposed that the Election Commission ( and its law ) permit political parties to take donations from Cos. officially and transparently. But some major political parties did not vouch the idea - till pending for consideration. The Tatas have formed a Trust for this purpose but " no takers ". Now we know why black money is not unearthed. ------------ Generation of black money by Public Sector : Unfounded. Some act by some individuals may not mean Public Sector .. !! Even their budget for Advertisemtnts, Gifts, Donations are regulated and strictly controlled and requires reporting. These are even discussed in the Parliament. In a mixed economy, as of now, bulk of expenses are done by Public Sectors and used for nation building. That may not be stooped. If FCI do not procure food articles, make a buffer stock, may be the major part of our population have to starve. -------------------- Cotntrols and licencing system : Since abolished. After prolonged demand by State Governments, the-then FM, Dr. Monmohan Singh abolised "Licence Raj" under the leadership of Narashinga Rao, PM. ( we remember late Mr Rao ... that was the begining of to-days "Open Economy") ...... In-effective Tax Laws : Yes. The drive for un-earthing black money is a BIG job encompassing whole of India and even outside like Swizerland Banks etc. Only directions from top Bourocrats, Political managers in Govt etc. may do this. Explained why that is not happening. |
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As per my information over 70% of Finance sector is not under regulation. However what happens is Money lenders(are in the unregulated sector) get a chance to exploit borrowers with low credit(that's why they borrow from money lender) also they earn more without tax!!!! this give competition to banks on a large scale(Keeping in mind 70%). On the whole money supply gets effected and government does not get a penny which will ultimately effect the system i.e. Economy as people earn with black money and don't pay tax. |
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