NITI CEO Aayog Amitabh Kant addressing a workshop on Cashless Transaction organized by the National Disaster Response Force (NDRF) said only 1% of Indians pay income tax. Further he said that is 95% of Indians are doing cash transactions, and then it is difficult for the economy to grow from USD 2 Trillion to USD 10 Trillion.
Our population is more than 1.25 Billion and the government is receiving income tax from only 12 Million people. There are numerous loop holes in our system that people can evade tax or pay minimal to keep IT out of their compound. In course of time tax evading techniques have been encouraged by accounts to attract more customers. This is demonetization affect will choke all the cash transactions and will force people to adopt to cashless transactions.
Kanth told further that government has enrolled nearly 26 crore people under the Pradhan Mantri Jan-Dhan Yojana (PMJDY) and more than 20 crore RuPay cards issued. Prime Minister Narendra Modi aims to take India from being the world’s fifth largest economy at present to among the world’s top three economies in the next ten years.
People can always switch back to cash transactions once the economy is flooded with new notes. To keep this in control, Prime Minister Narendra Modi is constantly encouraging people to go cashless. First clean country and now cashless country is what our PM is fighting for.