Black money or black income refers to the income that is not revealed to the tax authorities and thus has not paid any taxes. It is also called unaccounted money or illegal income.
Despite the difficulties involved in definition, the White Paper on Black Money has defined black money as “as assets or resources that have neither been reported to the public authorities at the time of their generation nor disclosed at any point of time during their possession.”
According to National Institute of Public Finance and Policy (NIPFP), “Black Money is the aggregate of incomes which are taxable but not reported to authorities.” Thus, in addition to wealth earned through illegal means, the term black money would also include legal income that is concealed from public authorities.
