{"id":1698,"date":"2024-03-28T19:13:43","date_gmt":"2024-03-28T13:43:43","guid":{"rendered":"https:\/\/lotusarise.com\/qna\/?p=1698"},"modified":"2024-04-03T07:17:41","modified_gmt":"2024-04-03T01:47:41","slug":"q-which-one-of-the-following-effects-of-creation-of-black-money-in-india-has-been-the-main-cause-of-worry-to-the-government-of-india","status":"publish","type":"post","link":"https:\/\/lotusarise.com\/qna\/upsc\/q-which-one-of-the-following-effects-of-creation-of-black-money-in-india-has-been-the-main-cause-of-worry-to-the-government-of-india","title":{"rendered":"Q.\u00a0Which one of the following effects of creation of black money in India has been the main cause of worry to the Government of India?"},"content":{"rendered":"\n<ul class=\"mcq wp-block-list\">\n<li>Diversion of resources to the purchase of real estate and investment in luxury housing<\/li>\n\n\n\n<li>Investment in unproductive activities and purchase of precious stones, jewellery, gold etc.<\/li>\n\n\n\n<li>Large donations to political parties and growth of regionalism<\/li>\n\n\n\n<li>Loss of revenue to the State Exchequer due to tax evasion<\/li>\n<\/ul>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>Answer: d) Loss of revenue to the State Exchequer due to tax evasion<\/strong><\/p>\n<\/blockquote>\n\n\n\n<h5 class=\"wp-block-heading\" id=\"notes-hd-660526bf0fe89\">Notes:<\/h5>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Black Money in India, is a term used to describe&nbsp;<strong>money that is illegitimately owned.<\/strong><\/li>\n\n\n\n<li>Black money includes&nbsp;<strong>all funds earned through illegal activity and otherwise legal income that is not recorded for tax purposes.&nbsp;<\/strong><\/li>\n\n\n\n<li><strong>The generation of black income has been resulting in a huge loss of revenue to the state exchequer due to continuous evasion of taxes both from direct and indirect taxes.&nbsp;<\/strong>\n<ul class=\"wp-block-list\">\n<li>In addition, these funds rarely enter the banking system. As a result, it can be more difficult for legitimate small businesses and entrepreneurs to obtain loans.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Black money and tax evasion which go hand in hand<\/strong>, have also the effect of seriously undermining the equity concept of taxation and warping its progressiveness.<\/li>\n\n\n\n<li>Together, they throw a greater burden on the honest taxpayer and lead to economic inequality and concentration of wealth in the hands of the unscrupulous few in the country.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Answer: d) Loss of revenue to the State Exchequer due to tax evasion Notes:<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","footnotes":""},"categories":[1,3],"tags":[38],"years":[52],"class_list":["post-1698","post","type-post","status-publish","format-standard","hentry","category-upsc","category-prelims","tag-indian-economy","years-52"],"acf":[],"taxonomy_info":{"category":[{"value":1,"label":"UPSC"},{"value":3,"label":"Prelims"}],"post_tag":[{"value":38,"label":"Indian Economy"}],"years":[{"value":52,"label":"2021"}]},"featured_image_src_large":false,"author_info":{"display_name":"LotusArise","author_link":"https:\/\/lotusarise.com\/qna\/author\/team-lotusarise"},"comment_info":0,"category_info":[{"term_id":1,"name":"UPSC","slug":"upsc","term_group":0,"term_taxonomy_id":1,"taxonomy":"category","description":"","parent":0,"count":1269,"filter":"raw","cat_ID":1,"category_count":1269,"category_description":"","cat_name":"UPSC","category_nicename":"upsc","category_parent":0},{"term_id":3,"name":"Prelims","slug":"prelims","term_group":0,"term_taxonomy_id":3,"taxonomy":"category","description":"","parent":1,"count":1251,"filter":"raw","cat_ID":3,"category_count":1251,"category_description":"","cat_name":"Prelims","category_nicename":"prelims","category_parent":1}],"tag_info":[{"term_id":38,"name":"Indian Economy","slug":"indian-economy","term_group":0,"term_taxonomy_id":38,"taxonomy":"post_tag","description":"","parent":0,"count":225,"filter":"raw"}],"_links":{"self":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/posts\/1698","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/comments?post=1698"}],"version-history":[{"count":0,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/posts\/1698\/revisions"}],"wp:attachment":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/media?parent=1698"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/categories?post=1698"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/tags?post=1698"},{"taxonomy":"years","embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/years?post=1698"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}