What is black income?
Black income refers to that income, on which, taxes have not been paid.
For example, if you are a business person(Indian) receiving an approximate amount of more than Rs.2.5 Lakhs(annually) and you are not paying taxes on that particular amount, then that amount would be treated as your black income, as it does not carry any record.
Answer to some random questions (students level) :-
1. I am a student(Indian), and apart from that I am running a small business and receiving a regular income of more than Rs.5000/month. Would this be treated as a black income?
Ans: No. You are earning Rs.5000/month, elaborately Rs.60,000(annually). You need not to worry at all, as concept of black income arises on an amount of approx. more than Rs.2.5 Lakhs(stated above). But, age matters. If you are 18+, you must file Income Tax Return (ITR).
2. What is a PAN Card? What is it’s use?
Ans: Permanent Account Number(PAN) is a type of document carrying identity of a person, plays a vital role in prevention of tax evasion, as it serves as a link between an individual and her/his purchase & sale transactions.
Uses of PAN Card are :
- Identity proof
- Opening bank accounts
- Filing ITR
- Purchasing Jewellery
- Investments in bonds, securities, etc.
- Buying or selling a motor vehicle
- Cash deposit of more than Rs.50,000 at a time
- Selling, renting or buying properties
- Taking loans and so on.
3. We know the impacts of black money, but what are it’s sources?
Ans: Black money is directly linked with bribe takers. Bribe is dishonestly convincing someone to act accordingly, offering a certain amount of money. There are different types of sources of having a black money : at small scale – consumers, retailers, middle-class persons, unemployed people or any other individual. And at large scale – booming industries, private companies, rich-class people, chartered accountants, government officials, and so on.