The common middle class people use it for their daily needs.. But what some bad politician and high class industrialist doing with it, they just make it useless and saved in foreign banks.......
Taxation rules are getting simpler in order to make it understandable to everyone.Hence it allures every earning person to pay the tax.
Black money can be brought into circulation by encouraging every one to pay it on time. Govt has taken many initiatives to ensure high tax collection by way of making it easy to pay. Saral Form has been replaced and now a days one can easily pay the tax online.Even for Corporates,complications have been reduced to substantial level. But the irony is that black money is being heavily accumulated by the people in power whom we look upto for bringing about metamorphic changes in the system.
There lies the rub! If a government encourages transactions in black money its fight against would always arouse suspicion. Those who have knowledge working with tax departments know better how things are run!
The fact is that all the money irrespective of its color remain in circulation. Even the so-called white money too may not used and it is for the owner to decide to use it or keep it idle!