The money that is earned and hoarded by dishonest and unfair means and kept in secret to evade taxes is called black-money. It becomes black because no taxes are paid on it. No taxes are paid on it because it is earned by dishonest and unfair means. Money turned to be black if taxes due thereon are evaded. The massive amount of black money in our country has created a parallel economy.
Continuing generation and accumulation of black money poses a grave threat to our economy and is likely to threaten the very security and survival of the country. It is the source and at the same times cause of graft, corruption and the debasing of social and moral values. There are various factors responsible for the origin, existence and flourishing state of the parallel economy of black money. It originates with the combination of money and power. With black money any one can be bought or bribed, essential commodities can be corned and hoarded, healthy competition can be driven out and honest men and public servants can be blackmailed.
Dishonesty and corruption have become a normal way of life to set things done. This had led to continuing deterioration of moral standards. In recent years black money generation has been growing at a very fast rate in our country. So much so that it is difficult to isolate a single sector of economy or administration that moves without the use of black money
- the major aspect child labour is affecting the economy in the terms of black money, According to a report by an NGO, there were an estimated 6 lakhcrore is generated as black money through child labour every year in India.if this six crore child labourers are substituted with the six crore adults with an average floor wage of Rs 115 per day, one labourer would generate Rs 1,38,000 crore. child labourers in the country. If that was not all, approximately Rs 1.2
