New Delhi: To promote cashless economy post demonetisation, the government has decided to reduce tax on digital payments for small traders.
The benefits will be provided to those traders who accept digital payments and have a turn over upto Rs 2 crore annually. On Tuesday, Finance Minister Arun Jaitley clarified on this move taken on Monday.
Jaitley explained that small traders and businessmen with turnover of up to Rs 2 crore, who most likely do not maintain proper accounts, will be presumed to have earned 8% income or profit for tax purposes. But the income for those using digital modes of payments, will now be presumed to be 6% percent of the turnover instead of 8%.
CEO of NITI Aayog, Amitabh Kant said he hopes that while the government plans to implement the GST bill in 2017, it will also announce tax benefits for customers using digital payments in the upcoming budget said.
Notably, last week NITI Aayog announced lucky draw prize to promote digital transactions.
On the other hand, to support centre’s cashless economy system, the Telecom Regulatory Authority of India (Trai) on Monday recommended a proposal that free mobile internet should be provided to rural subscribers every month.
For that the fund will be facilitated from Universal Service Obligation Fund, said Trai. So, 100 MB per month may be made available to rural subscribers for free to encourage cashless transactions.