In this article you will find long and short Essay, Paragraph, Article on Black Money for nursery essay, lkg essay, ukg essay, 1st to 12th, IAS, IPS Banking and other competitive exams essay and more. Essay of 200, 300, 400, 500 & 600 words for kids and students in Very Simple & Easy Words.
There are many sources of generating black money and people have been practicing this work for decades despite negatively affecting the society. Essays of various lengths have been provided here to help you on this topic in your exams, classes and competitions.
200 Words – Essay on Black Money for Kids & Students in Very Easy Words
The problem of black money is not new to our country. Attempts to hide money generated from various illegal sources from the government has been a common practice here.
The problem of black money has given rise to many other issues in India. Due to black money, misinformation is spreading in major issues in which the country’s economy is the main one. The government is completely dependent on tax revenue and the evasion of tax to deposit black money has adversely affected the country’s fiscal system. Apart from these effects, it also affects the general public because it is the basis of social and economic inequality in the country.
There are many reasons for the accumulation of black money. The high tax rate set by the government is believed to be the main reason for this. Other reasons include excise duty, price control policy, fixed rates for the real estate market, inflation and quota system. People seek various ways to hide their income from the government and avoid tax rates with it.
The need to prevent black money from accumulating should be sensitive. Although the government is taking steps to eliminate this problem, if the public does not support, then success cannot be achieved in this direction.
300 Words – Essay on Black Money for Kids & Students in Very Easy Words
Black money is basically money earned in the black market. This is the amount that has been hidden from the government so that tax payment can be avoided. The accumulation of black money has many negative consequences on society, among which economic and social inequality are prominent.
Sources of black money
Now the question is that when black money has such negative effects, why is the government not taking steps to eradicate this problem? The government is making efforts to free the country from black money but is stronger than the policies adopted to get rid of the source of this disease.
Needless to say that evasion of various types of taxes including income tax, state tax, corporation tax, excise and customs duty is the key to generating black money. Here’s a look at various sources of black money:
- Black Income Through Export: A lot of black money is generated by businesses that export their goods.
- Black Market: Good supply in black market is another source of black money.
- Stock market: A lot of profit is generated through stock market trade and most of it goes unaccounted for. Such unaccounted profit promotes the collection of black money.
- Illegal commission: Many government officials charge illegal commission for general services. Income earned through this promotes black money.
- Bribery: Bribery is carried out at various levels of government and private sector which directly promotes black money.
- Scams: Scams committed by politicians and others in power are undoubtedly a major source of black money.
The conclusion
The problem of black money has persisted in our society for decades. It is high time that the government should work for a successful plan to free the country from the clutches of this evil.
400 Words – Essay on Black Money for Kids & Students in Very Easy Words
The problem of black money is one of the major problems of our country these days. It ranks first in the list of economic inequality that promotes social inequality, causing many problems in the country. There are many factors in promoting this problem. Some of these include high rates of tax, cost of living, inflation, separate rates of excise and the real estate industry.
Ways to control the problem of black money
Controlling the problem of black money is important because it is hindering the development and progress of the country to a great extent. Here are some ways in which we can control this problem:
- The tax system should be realistic. People should not see it as a burden. Higher tax rates will only help people to trend towards tax evasion methods.
- The tax collection process should be made more efficient. The government should take some steps to give dedicated and honest officers to this task so that more and more officers are motivated to take it seriously.
- The government should work on its price control policy as it is the reason for the accumulation of black money.
- Public sector projects should be monitored regularly to reduce their expenditure.
- Private sector investment expenditure should also be effectively monitored.
- The government should take action against corrupt officials who contribute in many ways to the development of black money.
- Administrative corruption should be controlled at various levels.
- The sale and purchase of property should be thoroughly monitored by IT officials so that people do not hide any black money on this pretext.
- Politicians, celebrities, senior civil servants and media people should set an example for the general public by paying their taxes.
- Encouragement should be given to those who make voluntary disclosure of income.
- The exchange rate should be realistic and our comparative rate and position in the world economy should be reflected.
The conclusion
Although the Modi government has taken political steps to break this illegal wealth accumulation, much more still needs to be done to reduce this problem. People should understand the importance of paying tax and avoid focusing black money. Even a small contribution of each citizen in the form of taxes helps in the development of the country.
500 Words – Essay on Black Money for Kids & Students in Very Easy Words
Black money is money on which tax is not paid. It is hidden from the government so that it is exempt from tax. People have many means to save their money for not paying and avoiding tax. The way the government has recently tried to stop this problem, here is a look at some of those points.
Black money accumulated abroad
Many big business men, ministers and celebrities are known to deposit their money in foreign banks. However, no estimate of the total amount deposited by Indians in a foreign bank. It has been observed that several reports have come out which estimate the amount of money deposited by Indians in their foreign accounts. According to one of these reports, $ 1.06 trillion has been deposited in Switzerland while another report claimed that about 2 billion US dollars have been deposited in Swiss bank accounts of Indians. It has also been claimed that the illegal money of Indians in foreign accounts is around US $ 500 billion.
Demonetisation – a step towards eradication of black money
Recently, the Modi government took a major step to end the problem of black money. On 8 November 2016, Narendra Modi announced that from midnight 500 and 1000 rupee notes would become legally illegal. ATMs across the country were closed on 9 and 10 November. They were filled with new version of 2000 rupee notes and 500 rupee notes. The old notes were completely discontinued from circulation. According to the government, this action will reduce black money accumulation and eliminate illegal businesses and activities.
The announcement of the return of old currency notes and the scarcity of new currency suddenly wreaked havoc in the country and disrupted normal work in various areas for several weeks. The decision received mixed reactions from the public. Many people condemned the decision because it only caused inconvenience to the general public. This poor scheme has been criticized across the country. The public took to the streets in various parts of the country to protest against the government.
However the government has claimed that this step has been taken with the aim of improving the overall condition of the society and people will see its positive results in the long run.
Effect of note closure
The move was condemned and criticized by many. A look at the positive effects of this scheme is as follows:
- Due to this move of Modi government, huge amount of black money was destroyed.
- This emerged as a shock to political parties and ministers who used black money for election campaigning and other activities. This hampered the evil practices used by these parties to garner votes.
- There has been a huge decline in the amount of black money running in the real estate sector.
- Hawala transactions promoting terrorist activities were stopped.
- Along with this, the Maoists and their movements have been negatively affected.
The conclusion
The issue of black money is eating the country like a parasite. Demonetisation has helped control it to some extent, but still the government should do a lot to get rid of this issue.
600 Words – Essay on Black Money for Kids & Students in Very Easy Words
People make money from different sources and do not expose it so that they can avoid paying tax. The accumulated wealth is not taxed is known as black money. The problem of black money has been prevalent in our country for a long time. There are many factors contributing to this problem.
Due to black money
Here is a look at various reasons which are the cause of black money problem in India:
High tax rate
The tax rate in India is quite high. The increase in taxes and duties has forced people to take the path of illegal wealth accumulation. The tax free income limit in the country is only Rs 25,000 / -. These days when inflation is so high, this amount is not enough to run a house. This is the reason that professionals who earn more work hide their income so that they do not have to pay tax.
Price control policy
The price of some price items such as fertilizer, sugar, cement etc. is regulated by the government through a price control policy. This policy is rigorous and does not matter due to market fluctuations. Private manufacturers and retailers have taken advantage of this policy which results in the collection of black money.
Different Excise Duty Rates
The government has set separate rates for excise duty based on the quality of the product. To avoid paying a higher rate of excise duty, producers often reduce the rate of excise. Black money is generated from it.
Real estate transaction
Real estate transactions involve large amounts of money transactions. People accumulate black money through real estate transactions. Buying and selling property at a cheaper rate has become a lucrative business as a result of which a lot of black money is generated.
Quota system
The government has fixed a fixed quota for exports, imports and foreign exchange. Although it is prescribed for the benefit of the people, it is often used to deposit black money.
Inflation
High inflation is considered one of the causes of black money.
Black money effect
Black money not only negatively impacts the economic condition of the country but also has adverse social consequences. This creates economic inequality in the country which is undoubtedly the basis of social inequality. Such practices are the reason that the rich people here are getting richer and the condition of the poor is getting worse. Social inequality increases frustration among people, leading to crimes like robbery, bribery etc.
Tax evasion also means that the amount used for the development of the country did not reach the government. If the government does not get enough revenue then it will not be able to create new projects for the development of the country and the upliftment of the poor sections.
Countries where people pay taxes religiously are much better than countries where huge amounts of black money are stored.
The conclusion
The government has taken some measures to end the black money issue. One of the major steps taken recently in this direction was the decision of note closure. Although this step has succeeded in removing black money to some extent, many people have also condemned it. The note captives helped, but this help was certainly not enough. Much more needs to be done to stop this evil practice. The government should make more effective measures to prevent this problem and remember that the government alone cannot end the issue. If every citizen of the country contributes towards this then it can be stopped.