Digital payments to improve GDP assessment, says FM Nirmala Sitharaman

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November 7, 2020 9:23 AM

Sitharaman said that cashless transaction would be captured more efficiently and reflect in the country’s gross domestic product.

Nirmala Sitharaman, finance minister, gdp growth, ecoinomic growth, investmentSitharaman added that pre-filled income-tax forms and the indirect tax system were also simpler than earlier versions. (Photo source: PTI)

Finance minister Nirmala Sitharaman on Friday recounted recent measures taken to ease tax compliance and urged that tax practitioners should brief their clients on importance of digital modes of payment instead of using cash. Sitharaman said that cashless transaction would be captured more efficiently and reflect in the country’s gross domestic product.

Addressing a conference organised by the All India Federation of Tax Practitioners via video conferencing, she said that a tax deducted at source (TDS) was imposed on cash withdrawals to ensure its cash usage is reduced. The finance minister mentioned corporate tax cuts, abolition of dividend distribution tax (DDT), faceless assessment and appeal and taxpayer’s charter among the changes made by the government to rectify complicated tax compliance.

Sitharaman added that pre-filled income-tax forms and the indirect tax system were also simpler than earlier versions. Additionally, the tax-related processes for start-ups and norms governing prosecution in tax matter have also been streamlined, she said.

“Taxation compliance has to be promoted so that more collection can go towards the welfare of people in the far flung areas,” the finance minister said.

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