Topic: money laundering and its prevention
6. Despite multiple efforts to end the menace of black money, it has remained a ‘unsolvable problem’ for India. How does black money impact the country? Discuss the measures that are needed to put an end to it. (250 words)
Difficulty level: Moderate
Reference: Indian Express , Insights on India
Why the question:
The latest report of Indian funds in Swiss banks growing to a 14-year high did not evoke the kind of anger such news used to at the time of the India against Corruption movement.
Key Demand of the question:
To write unending menace of black money, its impact and measures needed to end it.
Directive word:
Discuss – This is an all-encompassing directive – you must debate on paper by going through the details of the issues concerned by examining each one of them. You must give reasons for both for and against arguments.
Structure of the answer:
Introduction:
Begin by giving context of black money in India.
Body:
First, write about the various measures undertaken to tackle black money in India – Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, Double Taxation Avoidance Agreements (DTAAs), etc. Also, write about the limitations in ending black money menace.
Next, write about the impact of black money on various facets.
Next, write about the measures that are needed to end black money menace in the country.
Conclusion:
Conclude with a way forward.
