NEW DELHI: Finance minister Arun Jaitley on Wednesday said deposits of now-defunct old Rs 500 and Rs 1,000 currency notes in bank accounts will not enjoy immunity from tax and the land of law will apply on source of such money.
A day after the government announced the withdrawal of Rs 500 and Rs 1,000 banknotes in the country's biggest crackdown against black money, corruption and counterfeit currency, Jaitley said old higher-denomination currency notes have to be deposited in bank accounts to get newer or smaller denomination currencies.
"But it should be clear that it is no immunity scheme. This (deposit) does not provide any relief from taxation. The law of land will apply (on source of fund)," he said.
"If the money is legitimate which had been previously withdrawn from bank or earned legally and saved and had been disclosed, there is nothing to worry about," Jaitley said.
But if it is illegal money, source will have to be disclosed and if it is a crime money, or bribe money, then it is trouble, he told DD News.
The finance minister further said that housewives and farmers with genuine savings need not worry about depositing cash in their bank accounts.
"The small amounts that people will deposit like Rs 25,000, 30,000 or 50,000 lying in house for expenses, whatever money could be there for meeting normal family expenses they need not worry. They can go to banks," he said.
The finance minister said for first one or two weeks replacements may be less but after 2-3 weeks as more currency notes come in market then normal replacement will be available.
The move would help make more and more transactions become digital, he said, adding now people will disclose income and pay taxes. "India will become a more tax compliant society."
Jaitley said that people who have accumulated black money, crime money or bribe would suffer after this.
"There is a premium now that this decision has created on honesty and dis-premium on dishonesty," he added.
"Obviously there are some inconvenience for a couple of days or couple of weeks but those inconvenience cannot be alibi that India continues to live (with black money and parallel economy)," he said.
The decision would bring more transactions under tax net and both direct and indirect taxes would move up. Reduction in parallel economy would increase the size of formal economy, Jaitley said.
Stating that the decision would have its ramifications on politics as well, Jaitley said some political funding has started by cheques and if this step can do some cleansing, it would be a great move.
Showing posts with label says Jaitley. Show all posts
Showing posts with label says Jaitley. Show all posts
Union Budget 2016: Growth of GDP has accelerated to 7.6%, says Jaitley
NEW DELHI: The growth of GDP has accelerated to 7.6 % and inflation has declined to 5.4 %, said Finance Minister Arun Jaitley while presenting his third Union Budget Monday.
Major highlights
Rs 38,500 cr allocated for MNREGA in 2016-17, the highest ever if entire amount is spent
Record agri credit target of Rs 9 lakh crore in 2016-17 set. Govt to allocate Rs 5,500 crore for crop insurance scheme
Rs 19,000 cr allocated for Pradhan Mantri Gramin Sadak Yojana in 2016-17; in all, Rs 27,000 cr after state contribution
28.5 lakh hectares will be brought under irrigation under the Pradhan Mantri Krishi Sichai Yojana
Allocation of Rs 35,984 crore for farm sector. A dedicated long term irrigation fund will be created in NABARD with a corpus of Rs 20,000 cr
Govt will undertake 9-point reforms including steps to ensure ease of business in governance, fiscal discipline to ensure benefits for people and tax reforms to ensure compliance
We will work for passage of insolvency and bankruptcy laws. We will undertake significant reforms
Govt is launching a new initiative to provide cooking gas to BPL families with state support
Next financial year will cast an additional burden due to implementation of 7th Pay Commission and OROP
Farm, rural sector, infra, social sector to have more Government expenditure
Growth has accelerated to 7.6 % in 2015-16 notwithstanding contraction of global exports
CPI inflation was 9.4 per cent in the last 3 years of previous government. It has come down to 5.5 per cent now
Major highlights
Rs 38,500 cr allocated for MNREGA in 2016-17, the highest ever if entire amount is spent
Record agri credit target of Rs 9 lakh crore in 2016-17 set. Govt to allocate Rs 5,500 crore for crop insurance scheme
Rs 19,000 cr allocated for Pradhan Mantri Gramin Sadak Yojana in 2016-17; in all, Rs 27,000 cr after state contribution
28.5 lakh hectares will be brought under irrigation under the Pradhan Mantri Krishi Sichai Yojana
Allocation of Rs 35,984 crore for farm sector. A dedicated long term irrigation fund will be created in NABARD with a corpus of Rs 20,000 cr
Govt will undertake 9-point reforms including steps to ensure ease of business in governance, fiscal discipline to ensure benefits for people and tax reforms to ensure compliance
We will work for passage of insolvency and bankruptcy laws. We will undertake significant reforms
Govt is launching a new initiative to provide cooking gas to BPL families with state support
Next financial year will cast an additional burden due to implementation of 7th Pay Commission and OROP
Farm, rural sector, infra, social sector to have more Government expenditure
Growth has accelerated to 7.6 % in 2015-16 notwithstanding contraction of global exports
CPI inflation was 9.4 per cent in the last 3 years of previous government. It has come down to 5.5 per cent now
Subscribe to:
Posts (Atom)