______________ is money that is earned through legitimate means and is accounted for, for which income tax or other tax is paid.

Correct option is B

Correct Answer:(b) White money

Explanation:

White money refers to income that is earned legally, declared to the government, and subjected to taxation. It is money obtained through legitimate business transactions, salaries, and investments, ensuring compliance with financial and tax regulations. White money plays a crucial role in a nation's economy by contributing to government revenue, infrastructure development, and public welfare programs.

In contrast, black money is income generated through illegal means or unreported transactions, which evades taxation and disrupts economic balance. Governments worldwide implement various measures, such as tax audits and digital payment systems, to curb black money circulation and encourage transparent financial transactions.

Information Booster:

● White money is legal, declared, and taxable income.
● Black money is unaccounted income generated through tax evasion or illegal activities.
● Governments promote transparency through tax reforms, demonetization, and digital transactions to reduce black money.
● Hawala transactions, corruption, and underreporting of income contribute to black money generation.
● Income tax compliance and financial audits help track unaccounted wealth.