SSC CGL DEST Previous Year – Black Money & Tax Evasion

A good and alert administration can spot Indians visiting these safe tax havens and Swiss banks. The rest of the job of tracing the flight of black money from India can be done locally provided the Government has the will. So far, the Government has been making excuses, some tenable and some untenable. Unfortunately, no Government irrespective of the party in power has taken even a genuine small step to stop the generation and flight of black money from India, forget about getting the black money back. Tax evasion is a serious problem that deprives the Government of much needed resources for development. When taxes are not paid, the money which could have been used for building schools, hospitals, roads and other public amenities is lost. The Government has to borrow money to meet its expenses, which increases the burden of debt on future generations. The parallel economy created by black money distorts the economic development of the country. Prices of real estate and other assets are artificially inflated due to black money. Honest businessmen find it difficult to compete with those who have black money. The menace of black money needs to be tackled with a firm hand. The Government should create a system where tax evasion is not possible. Technology can play a key role in bringing transparency to financial transactions. Digital payments can help reduce the use of cash and bring more transactions into the formal economy.