Highlighting the priorities of the Government, Finance Minister Jaitley in his Budget Speech said that one of the main priorities is to eliminate the black money component from the economy. He said that the Government is committed to make our taxation rates more reasonable, tax administration more fair and expand the tax base in the country.
Presenting a revealing picture after the demonetization Budget Results 2017, he said that during the period from 8th November to 30th December, 2016 deposits between Rs 2 lakh and Rs 80 lakh were made in about 1.09 crore accounts with an average deposit size of Rs 5.03 lakh. Deposits of more than Rs. 80 lakh were made in 1.48 lakh accounts with average deposit size of Rs 3.31 crore.
This data mining will help the Government immensely in expanding the tax net as well as increasing the revenues, which was one of the main objectives of demonetization.
No transaction above Rs 3 lakh will be permitted in cash. The cash expenditure allowable as deduction, both for revenue as well as capital expenditure will be limited to Rs. 10,000. Similarly, the limit of cash donation which can be received by charitable trust is being reduced to Rs 2,000 from Rs. 10,000. As regards, scheme of presumptive income tax for small and medium tax payers whose turnover is upto Rs 2 crore, 6% of their turnover instead of 8% at present will be counted as presumptive income.