Skip to main content

Tax laws to hit those with large amounts of undisclosed cash

Finance minister Arun Jaitley on Thursday reiterated the governmentā€™s assurance that people need not fear harassment from the income tax department if they have deposited small amounts in banks following the demonetisation of the Rs 500 and Rs 1,000 currency notes. The minister also spoke on a number of other issues at the Economic Editorsā€™ Conference in New Delhi. Edited excerpts:

Small depositors need not worry about demonetisation: Small deposits which are made, nobody will face any questions or harassment of any kind. So people who have small amounts of cash, there has been an Indian tradition to keep some cash always at home for exigencies and emergencies, which is required, they can exchange that; they can deposit that in their accounts. The revenue departments are not going to take notice of small depositors. In any case, deposits which are within  ..

Worry for some: It's only those who have large amounts of undisclosed monies who will have to face the consequences under the tax laws itself and we already have the tax laws in place. Nothing new is intended. Under our existing laws, whatever accountability they have, they will have to face that accountability.

Availability of new currency: We are trying to ensure that at the earliest the requisite replacement currency is available with the people. We do believe that there is no reason to rush in the initial days because people have time till December 30. More the deposits are spread out, the more will be the convenience to the people.

Short-term impact of demonetisation: There will be, for a few days, till there is an inadequacy of currency, some impact on local purchases. But in the medium and the long run, the overall impact of the recent steps we have taken on the Indian economy will be positive

Inconvenience due to demonetisation: Temporary hardship is no reason to perpetuate a system where black money prevails. We should be ready for temporary hardship for a cleaner systemā€¦There is no fundamental right of any section to deal in black money.

11TH NOVEMBER, 2016 THE ECONOMIC TIMES, NEW DELHI

Comments

Popular posts from this blog

GST collection for November rises by 8.5% to Rs.1.82 trillion

  New Delhi: Driven by festive demand, the Goods and Services Tax (GST) collections for the Union and state governments climbed to Rs.1.82 trillion in November, marking an 8.5% year-on-year growth, according to official data released on Sunday. Sequentially, however, the latest collection figures are lower than the Rs.1.87 trillion reported in October, which was the second highest reported so far since the new indirect tax regime was introduced in 2017. The highest-ever GST collection of Rs.2.1 trillion was reported in April. The consumption tax figures highlight the positive impact of the recent festive season on goods purchases, providing a much-needed boost the industry had been anticipating. The uptick in GST collections driven by festive demand had been anticipated by policymakers, who remain optimistic about sustained growth in rural consumption and an improvement in urban demand. The Ministry of Finance, in its latest monthly economic review released last week, stated that I...

Budget: Startup sector gets new Fund of Funds, FM to allocate Rs 10K cr

  The Indian startup sector received a boost with Finance Minister Nirmala Sitharaman announcing the establishment of a new fund of funds (FoF) in the Budget 2025. The minister unveiled a fresh FoF with an expanded scope, allocating Rs 10,000 crore. The initial fund of funds announced by the government with an investment of Rs 10,000 crore successfully catalysed commitments worth Rs 91,000 crore, the minister said.   ā€œThe renewal of the Rs 10,000 crore commitment to the Fund of Funds for alternative investment funds (AIFs) is a significant step forward for the Indian startup and investment ecosystem. The initial Rs 10,000 crore commitment catalysed Rs 91,000 crore in investments, and I fully expect this fresh infusion to attract an additional Rs 1 lakh to Rs 1.5 lakh crore in capital,ā€ said Anirudh Damani, managing partner, Artha Venture Funds.   Damani further added that this initiative will provide much-needed growth capital to early-stage startups, further strengthenin...