Q59. Which one of the following effects of the creation of black money in India has been the main cause of worry to the Government of India?
a) Diversion of resources to the purchase of real estate and investment in luxury housing
b) Investment in unproductive activities and purchase of precious stones, jewelry, gold, etc.
c) Large donations to political parties and growth of regionalism
d) Loss of revenue to the state exchequer due to tax evasion
Answer: (d)
- Black money includes all funds earned through illegal activity and otherwise legal income that is not recorded for tax purposes. Black money proceeds are usually received in cash from underground economic activity and, as such, are not taxed. The government has taken a number of measures to bring back the black money stashed abroad ‘The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015’.
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