“Much of the black economy in India is like digging holes and filling them. One digs a hole during the day and another fills it up at night. The next day, there is zero output but two salaries are paid.”India has lost more than $14.3 billion annually in illicit financial flow during the past decade making it one of the top exporters of such capital from Asia. In this paper the Author has shown how black money is a menace in India and analysed best possible ways to curb it. The paper is divided into seven chapters. First Chapter deals with the definition of Income under the Income Tax Act, 1961 ('the Act') and attempts to answer whether black money will be covered under the statutory definition of "Income". The estimate of black money lodged in tax havens by global financial institutions like the International Monetary Fund has reached as high as $18 trillion. In light of the global statistics, the second chapter discussed how the 'black money termite' has and is slowly gnawing Indian economy. Third Chapter analyzes Finance Act(s), current and yesteryears', to seek an answer as to how new provisions have been fashioned to curb the menace of black money. The Forth Chapter critically analyzes the barriers in investigation of secret bank accounts. Chapter Fifth deal with Section 50C of the Act which has been inserted to curb the use of black money into buying of immovable property. Chapter Six discusses DTAA & TIEA agreements entered by India with Switzerland, Mauritius and Germany and effects of existing provisions and mechanisms to curb black money. Chapter Seven visits the TIEA(s) in depth and gives brief information about the tax havens and government machinery under the said agreement(s). While concluding the authors have suggested certain measures which will be helpful in curbing illicit money slashed abroad.