India to offer tax breaks to small businesses that go cashless: Fin Min

New Delhi, Delhi, IndiaUpdated: Dec 20, 2016, 05:25 PM IST

The government last week also unveiled two lucky draw schemes to reward poor and middle-class consumers and small businesses for conducting cashless transactions. Photograph:(Getty)

Indian finance minister Arun Jaitley on Tuesday addressed the media and said the government will offer tax incentives to small scale businesses engaged in cashless transactions, news agency Reuters reported.

The incentives will be applicable to small scale businesses with a turnover of up to 20 million rupees ($294,000).

Jaitley said the move would enable such businesses to save up to 30 per cent in tax payments, Reuters reported.

He also said further amendments had been made to how small traders are taxed in order to boost digital payment, the Financial Express reported.

Jaitley further said that anybody who still has old currency must deposit the amount with his or her bank at one go, The Financial Express reported. 

If somebody goes to the banks every day, it raises questions, Jaitley said. 

Since the government's demonetisation of India's 500- and 1,000-rupee note, the government has come out with a raft of incentives to encourage cashless transactions. It has also come out with a host of orders governing how the old notes are to be exchanged for new currency. 

(WION with inputs from Reuters)