In simple words, black money means unaccounted money which generally has no trail of its origination. Evasion of tax is the primary reason for the origin of a black money transactions. Ofcourse, if the source in acquiring such money itself is illegal the motive is to conceal the income from such source. These transactions increase the amount of black money that floats in the system and are thus distorts the entire economy.
Hence, bringing back the black money into the country has been one of the key promises made by the Modi government at the time of elections, however this has been delayed and has is under flak since then.
The recent Budget speech by Mr Arun Jaitley too had proposed to introduce legislations to deal with the issue of domestic black money. In accordance to this proposal, the government is looking forward to introduce - The Benami transaction Bill.
A 'benami transaction' refers to any such transactions in which property is transferred to one person while consideration is paid by another. It includes all transactions which are done to conceal such facts.
As reported in the Financial Express, the proposed Benami Bill will act as a major deterrent for curbing generation of black money. This would include various transactions in real estate, which is one of the major avenues for Black money. These transactions involve huge sum of unaccounted cash and can be parked easily. This is because as most transactions happen off record. Infact, such transactions have also been one of the prime reasons for inflated asset prices.
The Bill is expected to give details for confiscation of benami property and prosecution of the doer of such transactions, which are in violation of the law. The finance ministry might also apportion the task "Appellate Tribunal" for dealing with the benami transaction cases to ensure their speedy process.
The saga of black money transactions is since ages. The only thing required is the political will. The government seems to be taking such steps, which can discourage the activity of those who are pouring their money into the real estate. But, considering the builder-politician nexus, the question is whether the government will oblige and implement such proposals is something we will look forward to.