No limit of Rs 5,000, can deposit any amount in old currencies, but not repeatedly: FM

New Delhi [India]: Clarifying over the confusion on reports that deposits of more than Rs 5,000 in old notes are allowed just once per account until December 30, 2016, Finance Minister Arun Jaitley said Monday there is no limit as such of Rs 5000 and any person can deposit any amount in the old currency, however, not repeatedly.

“With regard to the deposits made into the banks of the old currency notes, confusion has been created by some sections of the media. Let me clarify,” said Jaitely, “till now, there were a certain category of exemptions and those who were receiving old currency notes in the exempted areas were going and depositing them. Now all exemptions have been withdrawn.”

He said from today i.e. December 19 to the last date i.e. December 30, anyone who has old currency notes is not allowed to trade in them but he can go and deposit them with the bank.

“If they go and deposit with the bank any amount of currency, no questions will be asked to them and therefore the Rs. 5000 limit does not apply to them if they go and deposit it ones,” the Finance Minister said adding, “But if the same person is going everyday and depositing some currency, that gives rise to the suspicion as where is he acquiring it from.”

Today, he also announced an amendment in section 44AD of the Income Tax Act stating that the presumed income for all small traders, businessmen, and workshop owners who will do transactions digitally or through online payments or cheques, will be six percent than the earlier eight percent as announced during the course of the budget for 2016-17.

“All small traders, businessmen, workshop owners whose total turnover is less than two crore rupees a year need not maintain any books of account and their income was presumed to be 8 percent of the turnover,” Jaitley said adding, “Now this order has been amended and to the extent that they deal digitally or through cheques and banking transactions, The presumptive income will not be eight percent but will be six percent.”

He said that this reduction will constitute a major tax relief to small businessmen.

Also, elaborating on the meeting with I-T department and banking and technology experts for the promotion of Aadhar-enabled payment system, the Minister said with this system people would be able to make payments by providing their Aadhar number and thumb impression.

“Those who want to make payments on the base of their Aadhar card, there is a device which will be give to businessmen and others with which payments can be made by providing the Aadhar number and the thumbprint after which the payment will be debited,” he said. (ANI)