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Concepts & Tutorials

Video: How to Generate Black Money?

Devangshu Datta has a great presentation on how to create black money:

DD is a good friend and a great guy – and what he’s saying is clear. Yes, there is black money but it’s not “them” that generate it. It’s us.

We do it when we pay for our houses in black, we do it when we pay in cash to those that might not declare their income. We do it when we underdeclare our income, and there are easy ways to “whiten” black money, the most obvious being to take it out of the country and bring it back as FII investment.

DD says America has a 35% black economy in 1930 and that’s down to less than 10% today. We can go there if we follow the best practices followed by the west. It isn’t that difficult but the change can’t happen while you and me continue to produce black money.

  • Nishit says:

    Quite good. Would be interesting to know how US actually brought that figure from 35 to 10.

  • D Rama says:

    Deepak,
    Do you think govt really cares about black money? It can easily ban all transactions above Rs. 1000 in cash. Some time in the past, it had ordered removal of Rs. 1000/- notes from circulation and flushed out a lot of black money which got stuck in those 1000 rupee notes. For a long time, Rs. 100/- was the largest denomination. Then slowly 500 and then 1000 also got re-introduced. Why?
    Banks charge upto 2.5% of each credit card transaction. RBI/Govt can and should simultaneously ban transaction charges on using credit/debit cards.
    Most importantly, Govt should stop double taxation (income is taxed, and then spending is also taxed…by sales tax/excise/service tax etc). Not to mention govt expenses are never within budget and deficit financing by govts is seen as the norm in most countries.
    Just like Govt is least interested in balancing its budget, it is also least worried about black money. The music is playing, and all participants are happily playing Musical Chairs.

  • Px says:

    Nice Video ,
    In Sanatan Dharma it is called Dharma …
    Gandhiji said, “Be the change you wish to see in the world”
    To govern by virtue, let us compare it to the North Star: it stays in its place, while the myriad stars wait upon it. … Confucious ….the less the king does, the more gets done..
    And we have the amul baba, whose family shows little probity in their deeds and actions and whose talk and behavior doesnt make much sense !
    People have little incentive to be honest ! because the dishonest are rewarded and most often than not it is the honest that suffer in this kali yuga !

  • Srinivas says:

    I understand and appreciate the sentiments expressed in the video.
    How ever, i appreciate the feelings expressed by D Rama and Px more.
    All people cannot think of the country. For about 50-60% who are middle class, the need of the hour is to take care of themselves and their families and then comes country.
    Now there are few ways where one can protect his life savings from fast erosion via taxes inflation etc.
    In the absense of these support mechanisms, everyone tries to stash away as much as they could for the future. Well, it is very difficult to realise the line between need and greed in this situation.
    Thus only way out of this can be improving the governance and reducing poverty.
    Trust the new government does something for this.

  • Prasanna says:

    One of the most used method to convert black money white by big business man is through buying agricultural land and show agricultural income which is tax free as income from the land at the same time the land price is also appreciates giving handsome return. I could not understand opening dry cleaning / massage parlour thing…Is the income from those services are tax free?