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Wednesday, February 1, 2017
Biometric Aadhaar payment to usher tech revolution: President
BHIM has become one of the most popular mobile payment apps within days of launch, President Pranab Mukherjee said today, exuding confidence that soon-to -be unveiled biometric Aadhaar payment system will usher in a "technological revolution" in India.
"The launch of mobile app BHIM (Bharat Interface for Money) is a tribute to the vision of Dr Bhimrao Ambedkar who sought economic empowerment of the poorest. Within a few days it has become one of the most popular mobile app based payment mechanisms in the country," Mukherjee said addressing the joint sitting of Parliament.
The indigenously-developed BHIM was launched on December 30 by Prime Minister Narendra Modi to enable fast and secure cashless transactions using mobile phones. It has already seen over 1.1 crore downloads by mid-January.
"The biometric Aadhaar payment system to be launched soon will usher a technological revolution in India," Mukherjee said.
As many as 14 banks have already come on board for Aadhaar Pay, which will enable people to make and receive payments using their Aadhaar number and biometrics.
Besides, Digidhan Abhiyaan and two lakh Common Service Centres are providing employment to over five lakh youth, and spreading digital literacy.
To take banking system to the doorstep of the poor, and the unbanked, Indian Postal Payment Bank has been started, he pointed out.
"The postal network with wider reach and deep penetration of over 1.5 lakh post offices will also function as postal banks. Besides, the over 1 lakh bank-mitras appointed by banks, over 2.5 lakh Gram-Dak Sewaks will also function as banking correspondents," he said.
The government, through the Stand-Up India initiative, plans to empower over 2.5 lakh Scheduled Castes, Schedule Tribes and women entrepreneurs.
"For promoting entrepreneurship, the National SC/ST Hub has been launched with an initial allocation of Rs 490 crore," he said.
The President further said that the Bharat Net project, optical fibre cable now cover over 75,700 gram panchayats, up from only 59 in May 2014.
He said coal block and spectrum auctions illustrate the highest standards of transparency set by the Government in allocation of natural resources. To carry this forward, Government procurements have been brought under a single platform - Government eMarket Place (GeM), he observed.
The government, he said, has approved North East BPO promotion scheme in the digital India programme for creation of employment opportunities.
Source : http://www.dnaindia.com
Address by the President of India, Shri Pranab Mukherjee to members of both houses of Parliament
Honourable Members,
1. In this Basant season of renewal and resurgence, I welcome you all to this Joint Session of both Houses of Parliament. This is a historic session heralding the advancement of the Budget cycle and merger of the Railway Budget with the General Budget for the first time in independent India. We gather once again to celebrate democracy, a cherished value and culture that has prospered throughout the long history of our nation. Indeed, a culture that guides my government towards Sabka Saath, Sabka Vikas.
2. The ideal of saha na vavatu, saha nau bhunaktu - May we be protected together and blessed together with bliss - has inspired our civilisation from time immemorial. This year marks the 350th birth anniversary of the great Sikh Guru - Guru Gobind Singhji. We are also observing the one thousandth birth anniversary of the great saint-philosopher Ramanujacharya. The luminous path of social transformation and reform shown by them serves as a beacon for all, and is an inspiration to my government.
3. This year marks the Centenary year of Champaran Satyagraha, which gave a new direction to our freedom struggle and channelised janashakti in the fight against colonial power. Mahatma Gandhi's ideals of Satyagraha instilled in every Indian an indomitable self-belief, and spirit of sacrifice for the larger good. This janashakti is today our greatest strength.
4. The resilience and forbearance demonstrated by our countrymen, particularly the poor, recently in the fight against black money and corruption, is remarkable. The same spirit has driven the LPG ''Give It Up Campaign." Over 1.2 crore consumers have voluntarily given up their LPG subsidy, which has helped the underprivileged in accessing LPG connections. This janashakti has transformed Swachh Bharat Mission into a jan-andolan. 1.4 lakh villages, over 450 cities, 77 districts and 3 states have declared themselves Open Defecation Free. My government salutes the strength of janashakti and pledges to constructively utilise it in Rashtra Nirman.
Honourable Members,
5. At the core of all my Government's policies is the welfare of the garib, dalit, peedit, shoshit, vanchit, kisan, shramik and yuva. My government is guided by the Antyodaya philosophy of Pandit Deendayal Upadhyaya. His centenary year is being observed as Garib Kalyan Varsh.
6. Financial inclusion is key to poverty alleviation. An unprecedented 26 crore plus Jan Dhan accounts have been opened for the unbanked. Over 20 crore RUPAY debit cards have been issued to enable cashless payments. Moving swiftly from “Jan Dhan to Jan Suraksha” close to 13 crore poor have been covered under various social security schemes.
7. To take the banking system to the doorstep of the poor and the unbanked, the Indian Postal Payment Bank has been started. The postal network with wider reach and deep penetration of over 1.5 lakh post offices will also function as postal banks. Besides the over 1 lakh bank-mitras appointed by banks, over 2.5 lakh Gram-Dak-Sewaks will also function as banking correspondents.
8. Over Rs 2 Lakh Crore has been provided through 5.6 crore loans sanctioned under Pradhan Mantri Mudra Yojana to ensure collateral-free bank financing for the unfunded, and to promote small businesses. Seventy percent of this has been availed of by women entrepreneurs.
9. Under the Deen Dayal Antyodaya Yojana, which aims to empower women, particularly from the deprived sections, over Rs. Sixteen Thousand crore have been made available to Self Help Groups in the current Financial Year. The scheme aims to reach out to nearly 5 crore women soon.
Honourable Members,
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Click Here to read the complete speech
Cabinet approves Amendments to modify the list of Scheduled Castes of the State of Odisha and to change name of the Union Territory from Pondicherry to Puducherry
Press Information Bureau
Government of India
Cabinet
01-February-2017 11:34 IST
Cabinet approves Amendments in (i) the Constitution (Scheduled Castes) Order, 1950 to modify the list of Scheduled Castes of the State of Odisha, and (ii) the Constitution (Pondicherry) Scheduled Castes Order, 1964 to change name of the Union Territory from Pondicherry to Puducherry in the Order
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval for amendments in (i) the Constitution (Scheduled Castes) Order, 1950 to modify the list of Scheduled Castes of the State of Odisha, and (ii) the Constitution (Pondicherry) Scheduled Castes Order, 1964 so as to change name of the Union Territory from Pondicherry to Puducherry in the Order. The Bill namely Constitution (Scheduled Castes) Orders (Amendment) Bill, 2017 incorporating the above changes will be introduced in the Parliament.
Proposal of Sualgiri, Swalgiri caste, as per approved Modalities, was found to be eligible for its inclusion as a synonym of Sabakhia caste at SI. No. 79 in the list of Scheduled Castes of Odisha. Further, the name of Union territory of Pondicherry has been changed to Puducherry vide the Pondicherry (Alteration of name) Act, 2006 w.e.f. 01.10.2006. Accordingly, an amendment is needed in the Constitution (Pondicherry) Scheduled Castes Order, 1964 to this effect.
The Government approved Modalities in June 1999, as amended in June 2002, for considering proposals in regard to modifications in the lists of Scheduled Castes and Scheduled Tribes. According to the approved Modalities, amending legislation to the concerned Constitution Order is proposed only in respect of such proposals of the concerned State Government/Union Territory Administration, which have been agreed to both by the Registrar General of India (RGI) as well as the National Commission for Scheduled Castes (NCSC).
The Constitution of India provides certain privileges / concessions to the members of Scheduled Castes which are notified under the provisions of Article 341 of the Constitution of India. First list of Scheduled Castes in relation to a State or Union Territory is to be issued by a notified Order of the President after having consultation with the State Government concerned. Any subsequent inclusion in or exclusion from the list of Scheduled Castes can be effected through an Act of Parliament as envisaged under clause (2) of Article 341.
Six Presidential Orders were issued between 1950 and 1978 for specifying Scheduled Castes in respect of various States/Union territories. These Orders have been amended from time to time by Acts of Parliament enacted as per Article 341(2) of the Constitution between 1956 and 2016.
After the Bill becomes an Act, members of the community included in the list of Scheduled Castes will be able to derive benefits meant for Scheduled Castes under the existing schemes. Some of the major schemes of this kind include Post Matric Scholarship, National Overseas Scholarship, Rajiv Gandhi National Fellowship, Top Class Education, Concessional Loans from National Scheduled Castes Finance and Development Corporation, Hostels for SC Boys and Girls etc. In addition to above, they are also entitled to the benefits of reservation in services and admission to educational institutions.
Highlights of Union Budget 2017
By PTI | Updated: Feb 01, 2017, 03.45 PM IST
Finance Minister Arun Jaitley presented the Union Budget 2017, his fourth annual budget, today. Here are the highlights of this year's budget:
►Income Tax rate cut to 5 pc for individuals having income between Rs 2.5 lakh to Rs 5 lakh
►10 pc surcharge on individual income above Rs 50 lakh and upto Rs 1 cr to make up for Rs 15,000 cr loss of due to cut in personal I-T rate
►15 pc surcharge on income above Rs 1 cr to continue
►Of 3.7 cr individuals who filed tax returns in 2015-16, 99 lakh showed income below exemption limit
►Direct tax collection not commensurate with income and expenditure pattern
►Revenue deficit reduced to 2.1 pc from 2.3 pc for 2016-17
►Govt pegs fiscal deficit target at 3.2 per cent for 2017-18 and 3 per cent for next year.
► Monetary policy to be expansionary in major economies
► More steps will be taken to benefit farmers and the weaker sections; budget being presented during weak global economy
►Pace of remonetisation has picked up; demonetisation effects will not spill over to next year
►Functional autonomy of the railways to be maintained
►Demonetisation will help in transfer of resources from tax evaders to government:
►Merger of Railways Budget with General Budget brings focus on a multi-modal approach for development of railways, highways and inland water transport
►Only transient impact on economy due to demonetisation; long term benefit include higher GDP growth and tax revenue
►GDP will be bigger, cleaner after demonetisation
►Effects of demonetisation not expected to spill over to the next year, says Finance Minister
►Effects of demonetisation not expected to spill over to the next year, says Finance Minister
►Govt took two tectonic policy initiatives - passage of GST Bill and demonetisation
►Demonetisation was a continuation of series of measures taken by govt in 2 yrs; it is bold and decisive measure
►We are seen as engine of global growth; IMF sees India to grow fastest in major economies
►36 pc increase in FDI flow; forex reserves at USD 361 billion in January enough to cover 12 months needs
►CAD declined from 1 pc last year to 0.3 pc in first half of current fiscal: FM
►India has emerged as bright spot in the world: FM
►Uncertainty around commodity prices especially oil to have impact on emerging economies: FM
►Double digit inflation has been controlled; sluggish growth replaced by high growth; war on blackmoney launched: FM
►We have moved from discretionary based administration to policy based administration: FM Jaitley
► Agricultural sector is expected to grow at 4.1 per cent this fiscal, says Jaitley
►Demonetisation was a bold and decisive strike in a series of measures to arrive at a new norm of bigger, cleaner and real GDP
►Committed to double farm income in 5 yrs
►Plan, non-plan classification of expenditure done away with in the Budget for 2017-18 to give a holistic picture
►Mini labs by qualified local entrepreneurs to be set up for soil testing in all 648 krishi vigyan kendras in the country
►Budget presentation advanced to help begin implementation of schemes before onset of monsoon
►We will continue the process of economic reform for the benfit of poor.
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►Spend more in rural areas, infra, poverty alleviation, while maintaining fiscal prudence as guiding principle of Budget
►Our agenda for next year is to transform, energise and clean India
►World Bank expects GDP growth rate at 7.6 pc in FY18 and 7.8 pc in FY19
►Allocation under MNREGA increased to 48,000 crore from Rs 38,500 crore. This is highest ever allocation
►Rs 9,000 cr higher allocation for payment of sugarcane arrears
►Target of agriculture credit fixed at Rs 10 lakh cr in 2017-18
►Tax administration honouring the honest is one of the 10 pillars of Budget 2017-18
►National Testing agency to conduct all examinations in higher education, freeing CBSE and other agencies
►133-km road per day constructred under Pradhan Mantri Gram Sadak Yojana as against 73-km in 2011-14
►Govt to set up dairy processing fund of Rs 8,000 crore over three years with initial corpus of Rs 2,000 crore
►1 cr households to be brought out of poverty under Antodya Scheme
►Participation of women in MNREGA increased to 55 pc from 45 pc in past
►Modern law on contract farming will be drafted and circulated to states
►Dedicated micro-irrigation fund to be created with a corpus of Rs 5000 crore
►Market reforms will be undertaken, states will be asked to denotify perishables from Essential Commodities Act
►Space technology to be used for monitoring MNREGA implementation
►Sanitation coverage in villages has increased from 42 pc in Oct 2016 to 60 pc, a rise of 18 pc, says FM
►We propose to provide safe drinking water to 28,000 arsenic and fluoride affected habitations
►To construct one crore houses by 2019 for homeless. PM Awas Yojana allocation raised from Rs 15,000 cr to Rs 23,000 cr
►100 pc electrification of villages to be completed by May 2018
►27,000 cr on to be spend on PMGSY; 1 cr houses to be completed by 2017-18 for houseless
►PM Kaushal Kendras will be extended to 600 districts; 100 international skill centres to be opened to help people get jobs abroad
►The allocation for rural agri and allied sector in 2017-18 is record Rs 1,81,223 crore
►In higher education, we will undertake reforms in UGC, give autonomy to colleges and institutions
►A system of annual learning outcome in schools to be introduced; innovation fund for secondary education to be set up
►Two new AIIMS to be set up Jharkhand and Gujarat
►New rules regarding medical devices will be devised to reduce their cost
► 1.5 lakh health sub centres to be converted to Health Wellness Centres
►National Housing Bank will refinance indiviual loans worth Rs 20,000 crore in 2017-18
►Rs 500 cr allocated to set up Mahila Shakti Kendras; Allocation raised from Rs 1.56 lakh cr to Rs 1.84 lakh cr for women & child welfare.
►Capital and development expenditure pegged at Rs 1.31 lakh cr for railways in 2017-18 from Budget
►Allocation for SCs increased from Rs 38,833 cr to Rs 52,393 cr, a rise of 35 per cent
►35 pc increase in allocation for SC to Rs 52,393 cr
►For senior citizens, Aadhaar based health cards will be issued
►Model Shops and Establishment Bill to open up additional opportunities for employment of women
► Select airports in tier-II cities to be taken up for operations, development on PPP mode
►New metro rail policy to be unveiled
►Railway tariffs to be fixed on the basis of cost, social obligation and competition
►Service charge on e-tickets booked through IRCTC will be withdrawn
►Delhi and Jaipur to have solid waste management plants and five more to be set up later
►Government proposes Coach Mitra facility to redress grievances related to rail coaches
►500 stations will be differently abled by providing lifts and escalators
►Unmanned railway level crossings to be eliminated by 2020
►Railway line of 3,500 km will be commissioned in 2017-18 as against 2,800 km in 2016-17
►Total allocation for rural, agri and allied sectors for 2017-18 is a record Rs 1,87,223 cr, up 24 per cent from last year
►Rs 1 lakh cr corpus for railway safety fund over five years
►A scheme for senior citizens to ensure 8 per cent guaranteed returns
►Dedicated micro-irrigation fund to be set up by NABARD to achieve mission of Per Drop, More Crop
►Digi Gaon will be launched to promote tele-medicine and education
►Crude oil strategic reserves to be set up in Odisha and Rajasthan apart from 3 already constructed
►Coverage of Fasal Bima Yojana to go up from 30 pc of cropped area to 40 pc in 2017-18 and 50 per cent next year
►For transport sector, including railways, road and shipping, government provides Rs 2.41 lakh crore
►Allocation of Rs 10,000 cr for Bharat Net project for providing high-speed broadband in FY18
►Allocation for national highways stepped up to Rs 64,000 cr from Rs 57,676 cr
►Budget allocation for highways stepped up to Rs 64,000 crore in FY18 from Rs 57,676 crore
►Dispute resolution in infrastructure projects in PPP mode will be institutionalised
►Rs 2,74,114 crore allocated for defence expenditure, excluding pension; This includes Rs 86,000 crore for defence capital
►Govt to further liberalise FDI policy
►Over 90 per cent of FDI proposls are now processed through automatic route
►FIPB will be abolished
►Trade Infrastructure Export Scheme to be launched in 2017-18; total allocation for infra at record Rs 3.96 lakh cr
►Second phase of solar power development to be taken up with an aim of generating 20,000 MW
►After demonetisation on Nov 8 last year, deposit of between Rs 2 lakh and Rs 80 lakh made in 1.09 cr bank accounts at an average of Rs 5.03 lakh till Dec 30
►More funds beyond Rs 10,000 cr for recapitalisation of banks will be provided if needed
►The shares of railway CPSCs like IRCTC and IRFC to be listed on various stock exchanges
►We are largely a tax non-compliant society
►New ETF with diverse stocks will be launched in 2017-18
►Of 76 lakh individuals who reported income of over Rs 5 lakh, 56 lakh are salaried
►Integrated public sector oil major to be created to match global giants
►Govt will amend the Multi-state Cooperative Act to protect the poor and gullible investors
►Urgent need to protect poor from chit fund schemes, draft bill placed in public domain
►Computer emergency response team to be set for cyber security of financial sector
► Govt to introduce two new schemes to promote BHIM App - referal bonus for users and cash back for traders
►Govt doubles distribution target under Mudra Yojana to Rs 2.44 lakh crore for 2017-18
►Over Rs 80 lakh deposits in 1.48 lakh cr at an average of Rs 3.31 cr per account
►Customs duty on LNG halved to 2.5 pc
►FPI to be exempt from indirect transfer provisions
►Political parties can receive donations in cheque, electronic mode; electoral bonds to be issued by RBI
►Maximum amount of cash donation a political party can receive will be Rs 2000 from any one source as part of effort to clean political funding
►Capital expenditure stepped up by 25.4 pc in FY18 over previous year
►Total expenditure in FY18 at Rs 21.47 lakh cr
►Duty exempted on various POS machines and iris readers to encourage digital payments
►Rs 7,200 cr revenue loss due to reduction in tax on smaller companies
►Govt mulling introduction of legal changes to confiscate assets of offenders, including economic offenders, who flee the country
►Govt to set up a web-based interactive platform for defence pensioners
►Head post offices to issue passports
►Govt considering option to amend Negotiable Instruments Act to ensure that holders of dishonoured cheques get payment
►FRBM review committee has recommended 60 pc debt to GDP ratio; 0.5 pc of GDP deviation from stipulated fiscal deficit targets
►Payment regulatory board to be set up in RBI to regulate electronic payments, replacing Board for Regulation and Supervision in Payments and Settlements System
►3 yr period for long-term capital gains tax on immovable property reduced to 2 years; base year indexation shifted from 1.4.1981 to 1.4.2001
►A proposal to receive all government receipts beyond a certain threshold through e-modes under consideration
►GST implementation to bring more taxes to Centre and states
►No transaction above Rs 3 lakh in cash will be allowed as suggested by SIT
►Customs duty on LNG to be reduced from 5 pc to 2.5 pc
►To make MSME companies more viable, govt proposes to reduce IT tax with annual turn over of Rs 50 core up to 25 per cent
►I-T for smaller cos with turnover of upto Rs 50 cr up to 25 per cent
►Not possible to remove MAT levied on advance tax for now; carry forward allowed for 15 yrs instead of 10 yrs
►Relaxation in norms for Start Ups for getting tax exemption
►Capital gains tax exempted for the land pooled to build new capital of Andhra Pradesh effective from 2.6.2014
►Increase in personal tax collections is 34.8 per cent in last three quarters. Demonetisation has played a role
►17 pc growth in direct tax revenue for the second year in a row in 2016-17
►As against 4.2 crore people working in organised sector, only 1.74 crore individuals filed income tax returns
►Solar tempered glass used for manufacture of solar cells/panels exempted from customs duty
►Import duty on aluminium ores and concentrates raised to 30 pc from nil presently
►Actual revenue loss on tax proposals Rs 22,700 cr; gain from additional resource mobilisation is Rs 2,700 cr
►Net revenue loss from direct tax proposals to be about Rs 20,000 cr
►Excise duty on pan masala containing tobacco (Gutkha) raised to 12 pc from 10 pc
►Excise duty on non-filter cigarettes of length not exceeding 65 mm raised to Rs 311 per thousand from Rs 215 per thousand
Source : http://economictimes.indiatimes.com
Finance Minister reduces the tax rate from 10 to 5 per cent for individual income between Rs 2.5 to Rs 5 lakh.
Press Information Bureau
Government of India
Ministry of Finance
01-February-2017 14:11 IST
Finance Minister reduces the tax rate from 10 to 5 per cent for individual income between Rs 2.5 to Rs 5 lakh.
Finance Minister appeals to all citizens to contribute to Nation Building by making a small payment of 5 per cent tax if their income is falling in this slab.
A simple one- page Income Tax Return form for the category of individuals having taxable income upto Rs 5 lakhs other than business income
The Union Finance Minister Shri Arun Jaitley reduced the rate of taxation from existing 10 per cent to 5 per cent for individual assesses between income of Rs 2.5 lakhs to Rs 5 lakhs. This would reduce the tax liability of all persons below Rs 5 lakh income either to zero (with rebate) or 50 per cent of their existing liability.
While presenting the General Budget 2017-18 in the Parliament today, the Union Finance Minister Shri Jaitley said that the present burden of taxation is mainly on honest tax payers and salaried employees who are showing their income correctly. Therefore, post-demonetisation, there is a legitimate expectation of this class of people to reduce their burden of taxation. The Finance Minister further said that if a nominal rate of taxation is kept for lower slab, many more people will prefer to come within the tax net. The Finance Minister made an appeal to all the citizens of India to contribute to Nation Building by making a small payment of 5 per cent tax if their income is falling in the lowest slab of Rs 2.5 lakhs to Rs 5 lakhs.
The Union Finance Minister Shri Jaitley said that the Government is trying to bring within tax-net more people who are evading taxes. So, in order to expand tax net, it is decided to have a simple one-page form to be filed as Income Tax Return for the category of individuals having taxable income upto Rs 5 lakhs other than business income. Also, a person of this category who files income tax return for the first time would not be subjected to any scrutiny in the first year unless there is specific information available with the Department regarding his high value transaction.
In his Budget Speech, the Finance Minister further said that in order not to have duplication of benefit, the existing benefit of rebate available to the same group of beneficiaries is being reduced to Rs 2500, available only to assessees upto income of Rs 3.5 lakhs. The combined effect of both these measures will mean that there would be zero tax liability for people getting income upto Rs 3 lakhs per annum. and the tax liability will only be Rs 2,500 for people with income between Rs 3 and Rs 3.5 lakhs. While the taxation liability of people with income upto Rs 5 lakhs is being reduced to half, all the other categories of tax payers in the subsequent slabs will also get a uniform benefit of Rs 12,500 per person. The total amount of tax foregone on account of this measure is Rs 15,500 crore.
In order to make good some of this revenue loss on account of this relief, a surcharge of 10 per cent of tax payable on categories of individuals whose annual taxable income is between Rs 50 lakhs and Rs 1 crore has been proposed. This is likely to give additional revenue of Rs 2,700 crore.
The Finance Minister said that the direct tax proposals for exemptions, etc. would result in revenue loss of Rs 22,700 crore but after counting for revenue gain of Rs 2,700 crore for additional resource mobilisation proposal, the net revenue loss in direct tax would come to Rs 20,000 crore.
Union Budget 2017 : No Cash Transaction above Rs 3 lakh
Press Information Bureau
Government of India
Ministry of Finance
01-February-2017 13:57 IST
Budget gives a major push to Digital Economy; proposes No Cash Transaction above Rs 3 lakh
Government to launch schemes to promote BHIM app, Aadhar Enabled Payment System
Mission to be set-up to achieve a target of 2500 Cr digital transactions in 2017-18
Series of measures proposed to strengthen and regulate digital economy
In a bid to give a push to Digital Economy and weed-out corruption and black money, the Union Minister for Finance and Corporate Affairs, Shri Arun Jaitley in his Budget Speech today said that the Government has decided that no transaction above Rs 3 lakh will be permitted in cash. Accepting a suggestion by Special Investigation Team on Black Money to ban cash transactions above Rs 3 lakhs, the Finance Minister has proposed an amendment to the Income-tax Act in the Finance Bill.
Presenting the General Budget 2017-18 in the Parliament, the Finance Minister said that the Government will launch two new Schemes to promote the usage of BHIM App i.e, Referral Bonus Scheme for individuals and a Cashback Scheme for merchants. BHIM App was launched to promote digital transactions and will unleash the power of mobile phones for digital payments and financial inclusion, The Finance Minister Shri Jaitley informed the House that 125 lakh people have adopted the BHIM app so far.
The Finance Minister Shri Jaitley also announced that Aadhar Pay, a merchant version of Aadhar Enabled Payment System, will be launched shortly. This will be specifically beneficial for those who do not have debit cards, mobile wallets and mobile phones. A Mission will be set-up with a target of 2,500 crore digital transactions for 2017-18 through UPI, USSD, Aadhar Pay, IMPS and debit cards. Banks have targeted to introduce additional 10 lakh new PoS terminals by March 2017. They will be encouraged to introduce 20 lakh Aadhar based PoS by September 2017.
Highlighting the Government’s strategy to clean the system through digital economy, Shri Jaitley said that it has a transformative impact in terms of greater formalisation of the economy and mainstreaming of financial savings into the banking system. This, in turn, is expected to energise private investment in the country through lower cost of credit. India is now on the cusp of a massive digital revolution, he added. The Finance Minister said that a shift to digital payments has huge benefits for the common man. The earlier initiative of the Government to promote financial inclusion and the JAM trinity were important precursors to the current push for digital transactions, the Finance Minister added.
In a bid to incentivize the digital transactions, the Finance Minister Shri Jaitley proposed that the presumptive income tax for small and medium tax payers whose turn-over is up to Rs 2 crore will be reduced from the present 8% of their turnover which is counted as presumptive income to 6% in respect of turnover which is received by non-cash means. This benefit will be applicable for transactions undertaken in the current year also, he added.
The Finance Minister also proposed to limit the cash expenditure allowable as deduction, both for revenue as well as capital expenditure, up to Rs 10,000. Similarly, the limit of cash donation which can be received by a Charitable Trust is being reduced from Rs 10,000/- to Rs 2000/-.
To promote cashless transactions, the Finance Minister in the Budget has proposed to exempt BCD, Excise/CV duty and SAD on miniaturised POS card reader for m-POS, micro ATM standards version 1.5.1, Finger Print Readers/Scanners and Iris Scanners. He also proposed to exempt parts and components for manufacture of such devices, so as to encourage domestic manufacturing of these devices.
To strengthen and regulate the digital economy, the Finance Minister has proposed to create a Payments Regulatory Board in the Reserve Bank of India(RBI) by replacing the existing Board for Regulation and Supervision of Payment and Settlement Systems. The Committee on Digital Payments constituted by the Department of Economic Affairs has recommended structural reforms in the payment eco system, including amendments to the Payment and Settlement Systems Act, 2007. The Government will undertake a comprehensive review of this Act and bring about appropriate amendments, Finance Minister added.
To strengthen the digital payment infrastructure and grievance handling mechanisms, the Finance Minister said in his Budget Speech that the focus would be on rural and semi urban areas through Post Offices, Fair Price Shops and Banking Correspondents. He added that steps would be taken to promote and possibly mandate petrol pumps, fertilizer depots, municipalities, Block offices, road transport offices, universities, colleges, hospitals and other institutions to have facilities for digital payments, including BHIM App. A proposal to mandate all the Government receipts through digital means, beyond a prescribed limit, is under consideration. The Government will strengthen the Financial Inclusion Fund to augment resources for taking up these initiatives, the Finance Minister added.
In his Budget Speech, the Finance Minister informed that increased digital transactions will enable small and micro enterprises to access formal credit. He said that the Government will encourage SIDBI to refinance credit institutions which provide unsecured loans, at reasonable interest rates, to borrowers based on their transaction history.
The Finance Minister assured the House that the Government will consider and work with various stakeholders for early implementation of the interim recommendations of the Committee of Chief Ministers on digital transactions.
Shri Jaitley said that the Government is considering the option of amending the Negotiable Instruments Act to ensure that the payees of dishonoured cheques are able to realise the payments.
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