Glossary
Black Money
Black money refers to income that is earned but not reported to tax authorities, often obtained through illegal activities or hidden to evade taxes. It is typically held in cash or secret accounts and lies outside formal economic and regulatory systems.
How is black money generated?
It often comes from illegal activities like bribery, drug trafficking, tax evasion, or undeclared business income.
Why is black money harmful?
It reduces tax revenue, promotes corruption, distorts income inequality, and weakens a country's formal economy and governance.
How is black money different from white money?
White money is legally earned and reported to authorities, while black money is unreported or illegally obtained.
Can black money be stored in banks?
Usually not in regular accounts. It’s often hidden in offshore accounts, cash hoards, or investments under false names to avoid detection.
What are governments doing to fight black money?
Many countries enforce stricter financial reporting, tax audits, anti-money laundering laws, and data-sharing agreements to track hidden wealth.
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