Here we share with you the difference between black money and white money
It goes without saying that black and white money has its own advantages and disadvantages. with black money, you can avoid heavy taxation and go big on savings. On the other hand, you can avoid the risk of undertaking illegal activities with white money.
Got you intrigued already? Check out below for other important factors to know about white money and black money. But before you do that, we recommend getting yourself familiar with the basic differences between black and white money in order to get your fundamentals right.
The Difference Between Black Money And White Money
The white money makes the apparent layer between the individual’s returns and the administration. Even though, the white money is accounted to the government that can oblige the tax for those funds.
In addition, Black money doesn’t acquire circulated and remains in the control of the person who receives it and thus troubles the financial system because it does not use for productive purposes.
Therefore, the Income tax law treats unaccounted income as black money and if you have any unexplained money then it will be treated as the black money. On the other hand, if you have earned money and have a legal source of revenue, clarification and proof then you do not need to worry about any notice, inspection or legal action against you.
In creating or dealing with black money, the law of the property is violated at all the stages. Every procedure that attracts criminals is punished by illegal rules.
Moreover, the money generated by legal economic action or earned through selling goods or services is well accounted and reported to the particular authorities is white money.
The money generated by legal economic action or selling of goods & services but not accounted in the financial records of the owner to save income tax or is also called black money.
Lots of suggestions that the possessors of black money should declare their property so that they can be taxed and some money will be used for the improvement of weaker sections of the society are coming on.
However many of them oppose the view as soon as they have a feeling that the legalization of black money is equivalent to punish amnesty to the possessors of black money.
They think that such persons have to be punished and their property should be declared the property of the government so that dissuasion is created and the persons in future can not be tried to collect black money, without any fear.