NOIDA ROHIT SHARMA
The announcement of Finance Minister Mr Arun Jaitley to charge 6% tax from small traders whose turnover is up to Rs 2 crore on the total transactions made through banking or digital payment mode will be a big relief to small traders and will encourage adoption of digital payments in a faster way- said the Confederation of All India Traders.
CAIT National President Mr B C Bhartia and Secretary General Mr Praveen Khandelwal said that In the process of incentivising acceptance of digital payments amongst small traders a major incentive by way of reduction in presumptive rate of income under section 44AD of income tax act has been announced. Now in respect of turnover where sale proceeds are received and accepted through banking channels presumptive rate of income for taxation purpose will be 6% instead of existing 8% for turnover representing cash sales. This will be a major relief. If turnover is Rs 150 lakhs in cash the slab rate is 30% by applying 8% profit rate. But now if payments are accepted through banking channels by applying 6% presumptive rate of tax the applicable tax slab will be maximum 20%. The financial position of small traders will improve. They will be on position to present better picture of their affairs of business. The bankers will come to know real business hence availability of bank finance will increase.
