Malathi purchased a house through an agent. The agent accepted the commission amount in cash but did not issue a receipt to her.

Question

Identify and explain the concept from the given illustrations:

Malathi purchased a house through an agent. The agent accepted the commission amount in cash but did not issue a receipt to her.

Answer 1

Black money. 

Money that is received in cash but not accounted for and on which tax is not paid to Government is called Black Money. In the above case, the agent did not issue a receipt to Malathi, hence it will be a case of Black money.