FM Sitharaman says digital transactions will help measuring GDP accurately; asks to use cash only if urgent

Finance Minister Nirmala Sitharaman today said that digital transactions will help in making better assessments of GDP. Nirmala Sitharman added that the country’s GDP assessment will improve as more transactions will come under the purview. She further said that the temptation for cash usage should be brought down and be used only on cause of urgency. While addressing the National Tax Conference 2020, the FM also said that tax practitioners play an important role in educating and counseling assesses.

The minister also apprised that from 2014 onward, the government under PM Modi has made sure taxation becomes a simplified exercise and burden on taxpayers is reduced in terms of tax and compliance. However, she added that although periodically there are issues with which the GST system works, Infosys is trying to improve the technology side of GST. She also underlined that the government has abolished DDT and ambiguity related to double taxation while the processes for start-ups and prosecution related norms have been simplified.

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The minister said that the TDS norms notified to look at cash withdrawals over a limit in an effort to make sure that the country moves towards a digital transaction regime. She added that this would end the temptation of dealing with cash unless there are small amounts involved. Meanwhile, earlier in the day, FM Sitharaman’s Office tweeted that India is poised to recover strongly in the upcoming quarters due to reform orientation, resilient financial system, and robust domestic consumption. It added that the government has been consistently introducing reforms that are improving the investment climate in India. The government also said that India is on track to becoming a sought-after and favoured destination for global manufacturers and the country has seen robust investment inflows in recent times, with several MNCs committing significant investments in the country.