30% tax advantage for digital transactions, says Arun Jailtey

Finance Minister Arun Jaitley on Tuesday said small traders and businesses will get a tax advantage of more than 30 per cent for digital transactions.

The government on Monday said small traders and businesses with a turnover of up to Rs 2 crore would pay less tax if they accept payments through banking and digital means.

"There will be a significant tax benefit for small traders if you turn digital. It is a tax incentive to support digitisation of economy," Jaitley told the media.

"If we calculate, many traders will get a tax advantage of more than 30 per cent for transactions in digital mode," he added.

On putting a ceiling of Rs 5,000 on deposit of old notes, Jaitley said: "Since the exemptions on using old notes have been lifted (in hospitals, railway stations and other places), there will be no question of getting old notes on a regular basis.

"Whoever has old currency must go and deposit it in one go. If somebody goes every day, it raises suspicion," he added.