Black Money in India

Posted in Group Discussion (GD) Topics with Answers, Total Reads: 6109
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5 people are having a discussion on the topic (Archit, Bhavna, Chirag, Divya, Emran). The GD topic is Black Money in India.


Category: Economy, Finance


Group Discussion Starts

Bhavna: Hi friends. We are here to discuss the gd topic black money in India. Black money is basically the money which is unaccounted for and is kept illegally. There is a huge amount of black money which is present in India, which causes a lot of issues.


Divya: Hi. Black money is basically the money people hide and do not pay taxes on them. This money is either earned from illegal activities, criminal activities or is simply hidden by people to avoid paying tax. All this black money hurts the Indian economy and hinders the growth of India.


Chirag: Hi. Now that we have understood what is black money, it important to discuss why this is affecting India adversely. This black money, gives rise to a parallel economy, which affects the transparent transactions which happen through cheques and banks. Black money further leads to malpractices like corruption, bribery, crime etc. Black money in India is also used for funding extremists, which cause a lot of damage to life and property. Hence, black money is something which is corrupting India and dampening its progress.


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Emran: I agree with my fellow candidate. Black money is something which is having bad repercussions on an otherwise progressive economy like India. Since this money is not earned in the right way, it cannot be spent in the right way also. Hence, this money is spent on activities which otherwise are banned. This indirectly promotes illegal activities. There is no direct way to judge the amount of black money in India, but as per report black money in Swiss bank accounts is approximately USD $2 billion.


Archit: Much has been discussed about the ills of black money. But no country is perfect. Hence, we must also focus on points which can used to eradicate black money. I think one such move in eradicating black money was demonetization. This ensured that people with money stored or hidden became of no use overnight.


Bhavna: Yes. That was a good money. But that move cannot be a single way to fight black money. Because of banning of currencies of 500 & 1000, the problem of fake currency definitely disappeared, but eradicating black money is a huge process.


Chirag: I agree with Bhavna. The problem of black money can be tackled by ensuring strict implementation of law, more power to the income tax department, more transparent processes and strict punishment to all those who evade tax. The government should set a strong example to all defaulters and should be sent to prison for illegal activities.


Archit: These are valid points. But it necessary to understand which there is black money in the first place. There are many sectors or areas where black money is given and taken openly. In real estate, black money component is present in every sale or purchase of property. The education system has got the black money component in terms of donations & management seat fees. All these things are anyways known to the government. Hence, if they are serious about eradicating black money, they must also look at possible solutions to change laws and processes regarding these.


Divya: Along with that, funding by extremist groups also leads to circulation of bad currency in India. All these contribute in accumulation of black money.


Emran: Apart from these, people also need to realise that evading taxes is something which is wrong. They must realize that taxes will help the country prosper as the taxes help in building roads, providing food, water, electricity and facilities to rich as well as poor.


Chirag: But realization will happen only in an ideal scenario. People in India feel why should I pay my hard-earned money in taxes when I can simply hide it and spend it. Why should I be bothered about the government or tax. This attitude can be changed only by having stringent laws to curb accumulation of black money.


Bhavna: People unknowingly also contribute to black money if they do not take receipts from a shop or a restaurant. This money is unaccounted for the service provider, and converts their white money into someone else’s black money. Hence, educating people about the correct processes and ill-effects of black money is important.


Archit: From the entire discussion, it is seen that all of us are against black money in India, which is hampering our country’s growth.


Conclusion

Black money in India is a serious issues hampering the country’s growth. The best way forward is to have strict checks in place. Events like demonetization has been helpful but better laws, better processes, more digitalization, more power to the income tax department etc are the best way to go forward. Government should raid secure havens like Swiss banks and strict punishment should be given to those avoiding taxes.


Facts related to the Discussion

• Black money is the money unaccounted for i.e. money on which tax is not paid

• Black money is used for illegal activities, extremist activities which leads to corruption, bribery etc

• India has approximately USD $2 billion black money in Swiss banks

• After the demonetization exercise, more than Rs65,000 crore black money was declared in India

• Means to curb black money: more cashless transactions, digitalization of Indian banks, more power to the income tax department, changing existing practices in sectors like real estate, education etc. Educating citizens about ill-effects of black money, strict punishment to defaulters

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