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Finance Minister Arun Jaitley on Tuesday hinted that tax rates might be brought down as demonetisation is likely to bring in higher tax revenues from unaccounted wealth. In a statement released to the media, Jaitley said that a substantial quantum of future transactions would be digital as India moves towards a less-cash society. “Once they are substantially digital, they get caught in tax net. Therefore, the future taxation level would be much higher than what is currently being collected. This would also enable the government at some stage to make taxes more reasonable, which will apply to both direct and indirect taxes,” he said. The statement came roughly one-and-a-half months before the Budget 2017-17, which is expected to be tabled in Parliament on February 1. While Jaitley did not refer to the Budget, it is widely expected that the central government might announce a number of direct tax sops for individuals as well as the corporate sector in the Union Budget for 2017-18

A government panel on digital payments has recommended an independent payments regulator within the framework of the Reserve Bank of India (RBI) and similar treatment for banks and non-banking entities in the payments space. It has also suggested strengthening existing laws to protect consumers and their privacy. The panel, headed by former finance secretary Ratan Watal, was constituted in August to suggest ways to encourage India’s movement towards a cashless economy. Mint New Delhi,14th December 2016

Facing a ‘serious’ manpower crunch to investigate fraudulent and ‘serious irregularities’ on account of demonetisation, Central Board of Direct Taxes (CBDT) chairman Sushil Chandra has in an internal letter sought to rope in income tax inspectors to assist the investigation team. In the letter, reviewed by Business Standard ,addressed to all principal chief commissioners, Chandra has highlighted that the investigation team was ‘seriously handicapped’ due to manpower shortage. “Investigation Directorates have intensified enforcement actions in detecting serious irregularities. They are, however, seriously handicapped because of non-availability of manpower,” the CBDT chief said in the letter. He added that the current investigation and enforcement drive was likely to continue in the coming weeks. Chandra recommended reorganisation of work by the field formations, which could spare a few officers for investigation. He asked the principal chief commissioners to identify such off

The Employees' Provident Fund Organisation (EPFO) is likely to take a decision on the rate of intrest on PF deposits for 2016-17 financial year in its trustees meet on Monday. Sources said  the intrest rate could be at least 8.8 percent which was fixed for the last financial year. Business Standard New Delhi,14th December 2016