How black money is created?

Black money includes all funds earned through illegal activity and otherwise legal income that is not recorded for tax purposes. Higher amounts of black money in the economy often lead to increased corruption. Black money can be illegally disguised as legitimate money through money laundering.

How can we reduce black money?

The government has come up with a Gold Amnesty scheme to prevent black money in this asset. This is similar to Voluntary Income Disclosure scheme to tap black money in income taxes. Again any cash transaction above Rs 2 lakh demands PAN number. So any large cash deal won’t be able to generate black money.

Is the ‘black money industry’ being used to convert ‘white money’?

In 2012, a sting operation by news website Cobrapost had caught leading producers and directors allegedly admitting on camera how the industry is being used to convert “black” money into “white”.

What is the Black-to-white ratio in medium-budget films?

“The black-to-white ratio in medium-budget films not financed by banks but by multiple, small financier ranges is 60:40, even much higher in some cases,” says Jagdish. In this context, the legend surrounding the Kumar Sanu produced film Utthaan is unique.

How does a film get made?

According to the report’s findings, a film is produced and supplied through a complex channel of studios, distributors, exhibitors and artists, organised around star value and fame. The process of accumulating ill-gotten funds starts with production.

What are the major tax evasion practices in the Indian film industry?

The first-of-its-kind I-T analysis establishes major evasion practices such as suppression of receipts from movies, using ancillary sources, inflation of expenses and a huge amount of out-of-books payments/receipts, all a “well-established practice rampant in Bombay film industry.”