Eyeing upon cashless economy, govt. advocates small traders to adopt digital means
"An important change has been made with new notifications amending the earlier order which was announced during the course of budget 2016-17 wherein the small traders and businessmen who do not maintain proper accounts and have turnover of up to Rs. two crore are presumed to have earned eight percent income or profit for tax purposes," said Jaitley.
"But if they use digital modes of payments, their income will now be presumed to be six percent of the turnover and not eight percent," he added.
He said the decision will help in achieving the government's mission of moving towards a cashless economy and to incentivize small traders/businesses to proactively accept payments by digital means.
However, the existing rate of deemed profit of eight percent referred to in Section 44AD of the Income Tax Act shall continue to apply in respect of total turnover or gross receipts received in cash, stated the Central Board of Direct Taxation (CBDT) in a communication.
Under 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. two crore or less, the profit is deemed to be eight percent of the total turnover for taxation.
"Many traders will get the tax advantage of above 30 percent if the mode of transaction or payment is done using digital modes," he added.
National Unity Day: A tribute to Sardar Patel | Master Stroke
What all changed after J&K officially bifurcated into 2 UTs? | Master Stroke
Israeli spyware Pegasus snooped on Indian Journalists through Whatsapp | Master Stroke
Maharashtra: Shiv Sena's Sanjay Raut Meets Sharad Pawar
Drill displays IED diffused with the help of a robot by NSG
Article 370 only gave separatism and terrorism to J&K: PM Modi in Kevadiya
Let us work towards making India $5 trillion economy: Modi To Trainee Civil Servant | Full Speech
Radio Stations in Jammu, Srinagar and Leh renamed
Jammu and Kashmir to witness 'Acche Din'? | Seedha Sawal
Expert advice on how to survive poor air quality in Delhi-NCR