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Black Money is one of the major problems being face by our country
these days. This is one of the reasons behind the economic disparity
that in turn causes social inequality which is the root cause of
several problems in the country. There are a number of factors that
lead to this problem. Some of these include the high rate of tax,
increased cost of living, inflation, different rates of excise duty
and the real estate market. Ways to Control the Problem of Black Money
It is important to control the problem of black money as it is
hampering the growth and development of the country to a large extent.
Here are some of the ways in which we can control this issue: The tax
system should be realistic. People must not see it as a burden. High
tax rate would only make people look for ways for tax evasion. The
process of tax collection must be made more efficient. The government
must take certain steps to award the officials who are dedicated and
sincere towards this task so as to motivate more and more officials to
take this seriously. The government must work on its price control
policy as it is also one of the reasons behind the generation and
accumulation of black money. The public sector projects must be
monitored stringently so as to bring down their expenditure. The
private sector investment expenditures must also be monitored
effectively. The government must take action against the corrupt
officials who in many ways contribute to the growth of black money.
Administrative corruption must be controlled at various levels. The
sale and purchase of properties must be thoroughly monitored by the IT
officials to ensure that people do not hide any black money in the
event. The politicians, celebrities, senior civil servants and media
people must set an example for the general public to pay their taxes.
Incentives should be given to those who provide voluntary disclosures
of income. The exchange rates must be realistic and should reflect our
comparative rates and position in the world economy.
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