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Question
Paraellel economy emerges due to
Options:
A .  Tax Estimation
B .  Tax Evasion
C .  Tax Avoidance
D .  Tax Compliance
Answer: Option B
Answer: (b)
A parallel economy (black economy) indicates the functioning of an unsanctioned sector in the economy whose objectives run parallel with the social objectives.
A major contributory factor to such an economy is black money which is any money that a person or an organization acquires by a means that involves tax evasion.
It is that income from illegal activities that are not reported to the government for tax purposes.

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