Analyzing the sources of black money in India using fuzzy control system

  • B.Revathi, A.Nirmala, 3A.S.Prakaash,


In this article, we try to analyze the sources of black money in India using Fuzzy control system.Black money refers to funds earned in the black market on which income and other taxes have not been paid. Some Indian corporation practice transfer mispricing, by under invoicing their experts and ever invoicing their imports from tax haven such as Singapore, UAE and Hong Kong. Thus the promoters of the public limited companies, who hold really more than 10% of share capital, earn black money abroad at the cost of majority share holders and income tax to the Indian government. The total amount of black money deposited in foreign banks by Indians  is unknown. Some reports claim a total of US$ 1.06 trillion is held illegally in Switzerland. In Feb 2012, the director of Indian’s CBI said that Indians have US$ 500 billion of illegal funds i n foreign tax havens, more than any other country. Black money or Unaccounted cash is a very big  problem in our country, as it will keep the money out of bank . So, banks could not lent moe money to others and help the  business grow . In turn, it cannot contribute for the growth of our nation’s economy. Also, black money  steeply decreases the taxes collected by the government, and hence  it reduces the services available to the public.

In India, more than one-third of the business  is done with black money. In a highly regulated economy, businessmen offers bribe to government officials frequently to obtainthe approvals and other permissions. These government officials invest most of this money in the real estate.They will  understate the actual price paid by them. Apart from the property  purchased with black money,  the sellers pay less tax than the usual amount because the prices have been understated. Routine transactions, like paying to saloon, are  carried out off the books to avoid taxpaying. This study aims to find ways to control the sources of black money. In India, the ten main causes of Black money are: 1. Unrealistic Tax Laws and Tax Frauds2. Different Rates of Excise Duty3. Control Policy4. Quota System5. Scarcity6. Inflation 7. Elections in a Democratic System and Political Funding 8. Real Estate Transaction9. Privatisation10. Agricultural Income. Now we have to find , how  to restrict  the sources of black money, which isdiscussed in the following section of this paper

How to Cite
B.Revathi, A.Nirmala, 3A.S.Prakaash,. (2020). Analyzing the sources of black money in India using fuzzy control system. International Journal of Advanced Science and Technology, 29(7s), 5551-5560. Retrieved from