Effect of latent money on the economic and social system. Introduction: emergence of crypto-currency and its growth over time in circulation has adverse effects on the Indian economy in many ways. So it is essential to analyse its effect. Effects of Latent Money 1. The direct impact of cryptocurrency is on the government exchequer. Growth of black money tax evasion reduces government tax revenue. The government has to levy more taxes to cover this. Many people believe that this is the reason why the Regressive tax structure has developed in India. Both black money and tax evasion are intertwined. Both these together burden the righteous tax payer. It leads to inequality of income and assets. Black money helps tax evaders to increase luxury consumption. D.K. According to D.K. Rangnekar, while the incomes of taxpayers are falling, the incomes of tax evaders are increasing and luxury consumption is increasing, leading ...
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