We all use money for our day to day living. Our parents try to make the either ends meet to earn money so that we can live a comfortable and a settled life. Such is the case of money in our day to day life. For the money that our parents earn, which can be as salary from their boss or as cracking business deals with their clients, they are bound to pay tax to the  government. Tax is the amount charged by the government for the transactions and for specific goods and services. The government charges tax for many reasons. Some of the common taxes which we pay are:-

• Wealth tax
• Service tax
• Value added tax( commonly called as VAT)
• Custom duty
• Excise duty
• Income tax
• Professional tax
• Registration fee
• Stamp duty
• Toll tax

Most of them are indirect tax, which means we as consumers pay when we get or enjoy certain resources like Swaach Bharat Tax. Some of them are direct tax, which includes income tax.

So what happens when we fail to pay tax for our government? The simple answer for this quirky question is the money turns out as Black Money. You may all wonder whether black money is money in black color. Not at all. Every time we conceal or swindle our government from paying tax for the money earned by us it turns to be black money. The money which has been not paid tax and been hidden from the government notes becomes black money.

In India black money refers to funds earned on the black market. On which income and other taxes have not been paid. Studies say that 50% of Nominal GDP is black money (i.e) 0.95 trillion dollars. In PPD terms its 3.6 trillion dollars (1 trillion dollar=61 lakh crores). 1 trillion dollars is what we need in the next 5 years for developing our infrastructure.Indians hold about 9,000 crore or 2.18 billion Swiss francs in Swiss banks at the end of 2012 according to data released by Swiss National Bank.

India saw black money outflow of 123 dollar from 2001-2010.In order to bring out such money out the houses, our honorable Prime Minister Mr.Narendra Modi has come up with the demonetization idea, where in the worth of Rs.500 and Rs.1000 notes has been returned back. What happens with the demonetization is,  people who have 500 and 1000 rupee notes in their homes illegally will be forced to either bring out or put it in the thrash. This is a huge step which is not the first time that is happening in our country, but has a larger impact on the general public. There is a lot of inconvenience faced by the public but it’s just a surgical strike that will help in the country to become a better economical country in the near future. Let’s all make it a point to pay our taxes regularly and help to develop our country’s economic state permanently.

J.Steffey Sherine
Kids Prodigy writer and social worker
Tuticorin