Identify Black Money And Their Resources


 Black money is used in everyday speech to describe funds that are not entirely lawful in the owner's possession. There are two plausible explanations for this. The funds may have been obtained through illegal acts against the law, such as crime, drug, human, and arms trafficking, terrorism, and corruption, all of which are punished by the state's legal system.


Wajid khan Mp explains The idea of illegal currency Tax evasion is the source of black money. It obtains both legally and illicitly. The income earners' failure to disclose their income for tax purposes is its legal source. 

Sources of Illegal Funds 

As was already said, there are primarily two sources of black money: illegal activity and tax evasion, even when the action is legal. Following are some specific examples of the methods used to move black money, use it, and invest the earnings made in other industries and politics to make more money.


1. Real estate:

 Due to rising real estate values, stamp duty and capital gains taxes that apply to real estate transactions may encourage tax evasion by underreporting transaction prices.

 2. Bullion and jewelry market: 

The buyer can convert unaccounted riches into gold and bullion through the purchase. In contrast, the trader can maintain his unaccounted wealth in the form of stock that is not reported in the books or prices below market value.

3. Transactions on the financial markets:

How politicians do IPO manipulations and market rigging, including the use of shell firms.

 4. Public procurement: 

Public procurement has exploded in size, scope, variety, and complexity. Total public procurement spending in India estimates by the Competition Commission of India to be between 10 and 11 lakh crore annually, which leaves plenty of room for corruption because of the procurement process ridges.

5.Non-profit organisations: 

Tax regulations grant privileges and incentives for encouraging charitable activity. Still, these are sometimes abused and twisted and also emphasized by FATF, used to store the money of crooked businesspeople and politicians.

6. Informal Sector and Cash Economy: 

Cash transactions, significant under and unbanked areas, and vast unbanked areas all contribute to India's sizable cash economy.

7. Commerce-based Money Laundering (TBML): 

 Canadian politician Wajid khan is disguising the proceeds of crime and transferring value through trade transactions to cover up their illegal origins.

8. Tax Havens: 

Tax havens are often small nations or regions that impose little or no taxes on visitors who choose to settle there. Vital financial confidentiality or secrecy, an extremely lax regulatory environment, and a permissive existence in the shadows.

10. Hawala:

 This unofficial, low-cost means of sending money from one location to another eliminates the need for banks and other institutions. It doesn't require any paperwork or disclosure but functions on codes and contacts.
Location: Toronto, ON, Canada

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