The Game of Black Money


The Game of Black Money. When we talk about black money, have you ever seen a black note? No, right? Then what is this black money? When I was young, I had heard the word, Black Money, but I didn't even know what that meant. But when I got into the business Field, now I completely understand what is this black money, how it works. And today you are going to get that information on this black money. Let’s get to know that in today’s blogs. 

Whatever we earn, we pay taxes on it, We show the government that we have earned it, what we show or we pay tax on, that is our white income, and what we do not show means Income on which there is no tax paid, or we have not given money or not shown, then it is our black money. So when we talk about black money vs white money, then white money means, on which tax has been paid and black money means which tax has not been paid. Today the government has hospitals, the government has schools, roads are being built, highways are being built, flyovers are Being built, Major projects of the government are going on. Where does this money come from? This money comes to the government through taxes, either direct tax or indirect tax. Direct tax means income tax and indirect tax means, which is indirectly taken from you like service tax or GST, you pay goods and service, there are many other taxes too, I have told you majorly income tax and indirect tax. Now, which will be the black money, on which these taxes are not given, So why do businessmen hide their income. See, in today's date, if businessmen are doing business inside a private limited company, then according to today, he has to pay 25% tax and if someone is doing business individually, then he has to give a tax of 30%, depending on his income above 10lakh. And if he is earning more than it, he has to give cess, there are Education cess, there are many additional taxes, then it increases more than 30%. Then he also has to pay GST. In today's date, the market has become so competitive that even GST has to be included. Now, what is the problem of businessmen, understand this. The businessman says that earlier I used to work on a very small margin. Then I made some profit. On that profit, if I pay income tax of 30%. He also takes 18% GST from the customer. The government says that charge from the customer but when money comes to his account by charging the customer is nothing. The government demands all in taxes, then it hurts him to pay tax.

Tax evasion starts from here.

 Within India, there are two types of sectors, one is an organized sector where the entire money is in white and one in an unorganized sector where the whole game runs in black, then we contribute to our economy 50-50. But, when the game is going on in black, then the government cannot tolerate it and that is why the government brings policies to control black money, just like demonetization. When you see that the government turned down the Currency, that the notes of 500 and 1000 will be discontinued. Why did this happen? Because those who have the money will come and deposit it in the bank. You must have seen that people burned notes, they put fire on them. Notes were lying on the road. Whether you had heard or not. All this has happened In our country, but the government still has money. This means fake currencies were also printed in the market. The government brought GST. That if GST comes, then GST will wrap everything and make an organized sector, but a word is very famous inside India that is, Makeshifter. This black money game does not seem to stop in India at the moment and it is increasing.

It did not stop even after GST. Now let me tell you why, Suppose there is a businessman, Lala Sahab. He runs ABC company, He sells a product to the customer of rs 100 with 18% GST of rs 18, He charged ₹ 118 from the customer. Now legally this ₹ 18 will be included in the GST. The government will demand it, and deduct your profit from this 100 rs. I have told you income minus expenses is equal to profit. And suppose if you saved ₹ 10 on this, then you have to give income tax on it, Suppose on ₹ 10, he have to give income tax of ₹ 3, ₹ 18 deducted in GST, ₹ 3 saved to him, the government is happy with it, but people are not happy in it. People say that we don't want to give this tax. Lala says I won’t give tax. So he finds a loophole in the system. Suppose Lala Ji purchased raw material from somewhere, now Let's assume that He had bought goods worth ₹ 100 and had given a GST of ₹ 18 on it, so he had bought it for ₹ 118 and sold it for ₹ 118. Well, this does not happen. They will keep some margin, but I am giving the example. Here money was paid and the goods were sold, so here GST is already paid, then Lalaji Legally can claim the credit of this GST. If they were to give ₹ 18 to the government then what would he say, Lala Sahab that this has already been paid. Then suppose there was ₹ 17 paid instead of ₹ 18 then take ₹ 1 from them. I gave a GST of ₹ 1. Now you will say what is wrong with this, it is legal but now what is illegal? I will explain it to you. From here, what they have purchased is not necessarily that they must have purchased goods, There is a concept in the market which is fake billing, fake billing means that the goods have not arrived. Only the bill has been cut. Now a company is giving a bill to Lalaji, this company took a bill from the B company, B had taken a bill from C company, C had taken a bill from D company, and D had taken a bill from E company, E had taken a bill from F company, which was a fake company. These are all mixed companies. Your entire system is running from E which is a fake company and is registered in the name of a rickshaw puller. This fake company cuts the bill of 10 thousand crores. Now it does not pay GST at all, There is no GST paid here, no tax, no GST given.

Now the government says that they will catch this company, they are not giving us GST. That company was going on in the name of rickshaw puller And there was a turnover of crores, they give bills to each other, the government can track up to it, but if there are many parties between it, then whom will government catch and when billing reach to Lala Ji, then Lala Ji doesn’t know anything. Lalaji will say that I don't know who this is. Lala Ji had taken a genuine bill and the matter was over. Lalaji sold the goods for ₹ 118. He gave 

₹ 118 to the A company in the account, then this A company has to pay income tax as well as GST and but you understand he gave ₹ 118 total. 100 plus 18 then he took credit of 18 and deducted ₹ 100, which became income tax and GST of 0. So neither GST nor income tax is to be paid. That is why the government has started deducting TDS on the withdrawal of cash from accounts today. If you withdraw cash above one or two crores, then the government will keep an eye on you. You see that the government is alert.

In today's date, if you want to do anything in India, then you should have white income, which should be in your account. Now there is one more thing when you take a loan from someone, then when you take the loan, we call it the entry loan, the entry of the loan is made. When there is a loan entry, then no tax is deducted on the loan entry. You just have to show that I have got an investment from this company or the loan has come and there will be no tax, then you can use this money in your business and later you can repay it with or without interest. Well in good, it is legal. Now, what is illegal going on here because our Lalaji found a loophole again, Lala Ji does hawala. Now, this hawala is an agent, and they are in every country. Big people are running hawala networks. There are many businessmen inside it. So when they are in hawala, they have to send say ₹ 116 Cr to Dubai, Then it cannot transfer my account. They give it there. Now it is the hawala who is sitting in Dubai. They have settings. Now there is no income tax in Dubai, so even if you put that money inside an X company, there will be no tax. Suppose that company earns money, it sends Money to another company in Europe and after that, that money reroutes to India. It does not reach directly to Lala Ji, Suppose it reroutes from N company then It reaches to M and then it goes to P. After that, this company again gave money to Lala Ji, now that 116 Crores had gone from accounts to accounts, This again came to Lala Ji through money laundering. Now, for People who get caught in this money laundering, the government takes out as much as they have earned. But see what happens, how many people are trapped in this out of 100, they are 2-3, and others are saved in this. And the circle of black money going on, money does not reach the government and it keeps going.

Pushkar Raj Thakur
A California-based travel writer, lover of food, oceans, and nature.