Nifty99000 100%

Sensex99000 100%

Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: 4.0
Article rating: No rating
Article rating: 4.0
Article rating: 5.0
Article rating: No rating
Article rating: 4.0
Article rating: 3.8
Article rating: 2.9
Article rating: 2.3
Article rating: No rating
Article rating: No rating
Article rating: 4.0
Article rating: No rating
RSS

News

All banned notes deposited with banks may not be legitimate: Jaitley

Author: IANS/Thursday, August 31, 2017/Categories: Government

All banned notes deposited with banks may not be legitimate: Jaitley

New Delhi, Aug 31 - In the backdrop of the RBI's report stating that 99% of the demonetised cash had come back into the banking system, Finance Minister Arun Jaitley said “all of it may not be accounted money”.

“Demonetisation helped in bringing transparency in the system. Money getting back into banking system -- not necessarily legitimate money,” Jaitley said here at the inaugural session of 'India Summit 2017' organised by The Economist magazine.

The Reserve Bank of India (RBI) on August 29 revealed that of the Rs 15.44 lakh crore of notes taken out of circulation by the demonetisation of Rs 500 and Rs 1,000 notes in November 2016, Rs 15.28 lakh crore, or almost 99%, had returned to the system by way of deposits by the public. 

The Minister, however said that demonetisation achieved the overall objectives for which it was brought in. 

"It helped in bringing informal economy into a formal one. Demonetisation helped in widening tax base which in turn led to increase in the direct and indirect tax collections. 

"Note ban has ended anonymity surrounding money. Demonetisation shook the system," he added.

"We benefited on direct taxes front on the back of note ban. Twenty five per cent more people have filed Income Tax returns. Significant additions to July Goods and Services Tax (GST) collections is seen. 

"At two-thirds GST returns, we have surpassed the target. GST collections in first month of its implementation was more than the government's expectations," Jaitley noted.

He said that as a long-term note ban impact, spending would get a boost as revenues would go up.

Talking about GST, Jaitley said he expected convergence of tax rates in the coming days.

"I see two standard rates converging into one in future. The GST Council may decide on convergence of rates at appropriate time," he said.

Jaitley, however, said that having a single standard GST rate would be inflationary for a disparate range of consumers, as one tax rate was inequitable.

He added that GST implementation was quite smooth without any major glitches. 

Touching upon the resolution of non-performing assets (NPAs) of public sector banks (PSBs), he said that it was not possible to have a surgical solution to bad loans.

"Government is trying to resolve the NPA issue of PSBs on a priority basis and has taken various steps in this regard," he said.

Jaitley said the government was actively considering PSB merger as banking decisions need to be taken on commercial considerations. 

He added that depending on affordability, the recapitalisation needs of banks would be met.

Print Rate this article:
No rating

Number of views (310)/Comments (0)

rajyashree guha

IANS

Other posts by IANS
Contact author

Leave a comment

Name:
Email:
Comment:
Add comment

Name:
Email:
Subject:
Message:
x

Videos

Ask the Finapolis.

I'm not a robot
 
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
 
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest
 
 

Categories

Disclaimer

The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free