Black money or unaccounted money circulating in the parallel economy is a big menace to the economy. The study aim is to be attempted to assess the overall profile of parallel economy in India, particularly in terms of causes, impacts and government initiatives. The indicator show that parallel economy has been expanding very rapidly in India as well as in developing countries. The government of India already introduced various commissions for estimating black economy but estimation reports are not same. Indian government is more concerned about the prevalence of the parallel economy and various commissions are formed for controlling it but results are not so impressive. Thus, the research suggests that recommendations of the commissions or laws should be implemented correctly for reducing volume and bad effects of black economy