BLACK MONEY BLEAKS INDIAN ECONOMY...............
Black money or unaccounted money circulating in the parallel economy is a big menace to the economy. It is also a cause of big loss in the tax-revenues for the government. As such it needs to be curbed. Its elimination will benefit the economy in more than one way. It will also generate more revenues for the government.
Black money may be defined as the money that is generated by activities that are kept secret in the sense that these are not reported to the authorities. As such this money is also not accounted to the fiscal authorities i.e., taxes are not paid on this money.
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.
But in general they are not able to catch up with the people in business, or in professions, or many of those employed. Many in these categories make black activities. Many high placed official and honest employees earn much less than an average small shopkeeper in big cities like Bombay and Delhi.