Black Money in India: What are regulation laws?

BENGALURU:  After much hyped hue and cry about retrieving the stacked up back money, Special Investigation team (SIT) found that 300 of the 618 accounts in the HSBC have no cash, and most of the names were repeated, as reported by Rediff. This hampered the whole investigation as HSBC is technically not at fault. The SIT is in the process of finding a way out to track down the details of the account holders.

In spite of having many laws and regulations in place to curb black money in India, it continues to persist.

Generally, black money is generated in two ways. Firstly, legal income that is unaccounted for and secondly, money that is earned from illegal sources like smuggling, drug trafficking and other such activities. There are also certain ways through which Non Resident Indians (NRI) become the source of black money.

There is also no specific term to refer black money, as the meaning changes as per the scenario and varying methods. Vidya Rajarao, partner, forensic services, Grant Thornton India LLP says, “black money has many pseudo names which include, 'unaccounted income', 'black income', 'dirty money', 'black wealth', 'underground wealth', 'black economy', 'parallel economy', 'shadow economy', and 'underground' or 'unofficial' economy.” These terms pretty much sum up how black money is resourced in India.

Also Read: India Pledges Over $9 Mln To UN Development Activities
Can NDA Outperform UPA-2 With New Cabinet