RBI was adequately prepared for demonetisation; has enough currency stocks to last beyond December 30: Jaitley
In a bid to make economy cashless, government is planning to offer tax incentives to small traders who are accepting payments through digital mode.
New Delhi: Finance Minister Arun Jaitley on Tuesday said that RBI was adequately prepared for demonetisation and it has enough currency stocks that will last beyond December 30.
"There was full preparedness. There was not a single day when RBI had not released adequate currency to banks. There was a certain level of currency that was to be released and there was full preparedness for it," Jaitley said.
Asked about the currency in circulation, Jaitley said the figures will be made public only after accurate calculation after December 30, the last date for depositing the scrapped currency in banks.
"The currency which got printed might have gone to Post Offices and from there to banks and again back to currency chest so there could be double counting and scope for inaccuracies. So we do not want to guess the figures (of currency in circulation)," he said.
Addressing the media in the national capital, Jaitley on Tuesday said government is planning to offer tax incentives to small traders who are accepting payments through digital mode.
"All small traders, businessmen and workshop owners whose total turnover is less than Rs 2 crore a year may not maintain any books of account and their income was presumed to be 8 percent of turnover. Now this order has been amended. And to the extent that they deal digitally or through cheques and banking transactions the presumptive income will not be 8 percent but will be 6 percent," Jaitley added.
Under the existing Section 44AD of the Income-Tax Act, 1961, in case of certain assesses (an individual, HUF or a partnership firm other than LLP) carrying on any business having a turnover of Rs 2 crore or less, the profit is deemed to be 8 percent of the total turnover for taxation.
Whoever has old currency must go and deposit it in one go, if somebody goes everyday it raises suspicion, said Jaitley on the new RBI circular which says deposit of banned Rs 500 and Rs 1,000 notes for amount exceeding Rs 5000 shall be made only once per account until December 30.
Prime Minister Narendra Modi, in a televised address to the nation on November 8, had announced that Rs 500 and Rs 1000 notes will no longer be legal tender from November 9.
He had said the government has declared a "decisive war" against black money and corruption.
With PTI Inputs