Menace of Black Money in India and its Mitigation

This paper endeavours to study the Concept of black money in India. The mounting size of black money in India has been drawing attention since last many decades. The black money affects the macroeconomics variables as well as the microeconomic variables, makes government policies failure. The mounting size of black economy is mainly due to the weak regulations and administration of taxes, loopholes in existing enforcement system. Taking the benefits of such weak system, the tax evaders have been concealing their wealth from being taxed and parking those undisclosed income over the illegal activities or impermissible activities which further increases the black wealth and yields no tax revenue to government exchequer. Until now several estimates have been initiated to estimate the actual size of black economy and various measures have been undertaken by the Government of India to curb the back money. This paper discusses the several such estimates of black money, causes of generation of black money, its impact on the key sectors of the economy and the recent measures or schemes that have been undertaken to curb the black money of India.