What is black Money?

Series on Basics of Economics Part 10: Black Money: Definition: There is no official definition of the black money in economic theory, with several different terms such as black money, parallel economy, unaccounted economy, illegal economy black incomes, and irregular economy all being used more or less synonymously. The simplest definition of black money could be money that is hidden from tax authorities. So, black money can come from two broad categories: 1. Illegal activity and 2. Legal but unreported activity. The first category is the obvious one, i.e. money that is earned through illegal activity is obviously not reported to the tax authorities, so it is black. The second category comprises income from the legal activities that are not reported to the tax authorities. A large number of small shops around the country almost exclusively seen doing business in cash without any receipts. All of this could potentially be black money. Another major source of black money is: The income earned by companies that is routed through shell companies abroad, thereby evading tax authorities. The definition of black money itself makes it extremely difficult to quantify. How is the government is supposed to measure the economic activity that is actively being hidden from it?   Tags: Best 11th commerce classes in Pune, 11th commerce class in Pune, top commerce coaching in pune, Commerce classes in Pune city, 12th commerce classes in Pune, 12th commerce class in Pune, commerce classes near me, best commerce classes near me, 11th 12th commerce classes near me, BBA coaching classes in Pune, BBA classes near me, BCom classes in Pune, BCom classes near me, BBA tuitions near me, BCom tuitions near me, commerce tuitions near me, classes for 11th commerce, CA classes in Pune, Pune 11th commerce classes, tuitions for 11th commerce, CA foundation classes, CS foundation classes, best CA foundation classes, best CS foundation classes

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