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FM Arun Jaitley announces lesser income tax for small businessmen

He said, "The usage of credit and debit cards as well as e-wallets usage have increased significantly post demonetisation. E-transactions have increased and Aadhar-based transactions have increased by almost 300 percent...We are aware that there have been problems with USSD and UPI and as time goes by we will

Arnima Dwivedi

Arnima DwivediBy Arnima Dwivedi

Published on 20 Dec 2016 11:42 AM GMT

FM Arun Jaitley announces lesser income tax for small businessmen
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New Delhi: Finance Minister Arun Jaitley on Tuesday announced the latest changes in rules regarding Income Tax and old currency deposit schemes. The finance ministry said that small traders and businesses with a turnover of up to Rs 2 crore will pay less tax if they accept payments through banking and digital means.

Jaitley said that if small traders and businessmen with turnover of up to Rs 2 crore use digital modes of payments, their income will now be presumed to be 6 per cent percent of the turnover instead of 8 per cent but those who did not maintain proper accounts, will be presumed to have earned 8 per cent income or profit for tax purposes.

He said, "The usage of credit and debit cards as well as e-wallets usage have increased significantly post demonetisation. E-transactions have increased and Aadhar-based transactions have increased by almost 300 percent...We are aware that there have been problems with USSD and UPI and as time goes by we will correct it".

What else Jaitley said:

  • The government is fully prepared for demonetisation. RBI has enough cash in reserve and it will have enough post December 30 and beyond.
  • We will give info about the cash in circulation and the cash printed later. There has not been a single day when the RBI failed to disburse adequate cash to banks.
  • Axis bank has taken action against its own officers, especially the ones whom the investigative agencies have not caught. Banks themselves have identified its corrupt officers and taken action against them.
  • However, the union minister refused to comment on revised income tax slabs.
  • Since all exemptions for old currency is over, people will get one opportunity to deposit all old currency notes. If a person keeps on depositing old currency notes everyday it will raise questions.
  • Whoever has got old currency notes must deposit it in one go.

Arnima Dwivedi

Arnima Dwivedi

A journalist, presently working as a sub-editor with newstrack.com. I love exploring new genres of humans and humanity.

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