Finance Minister Arun Jaitley has said the demonetization of high value currency gave a shock to the country's informal economy leading to expansion of the formal economy. <br/><br/>Replying to a discussion on General Budget for 2017-18 in the Rajya Sabha, he said 18 lakh bank accounts have come under the scanner of Income Tax Department as there are several mismatches between the income and tax profile. <br/><br/>Giving details of the benefits to the economy following demonetization, Mr Jaitley said the tax collection has gone up during November and December 2016 barring few states. He said the people have supported the demonetization. <br/><br/>The Finance Minister said adequate funds have been allocated for several sectors including Infrastructure, Agriculture, SC,ST sub-plans. He said the government has infused capital into banks and will infuse if required. On Non Performance Assets (NPAs) of the banks, Mr Jaitley said they are linked to 15 to 20 big accounts which have been a legacy of the past. <br/><br/>Mr Jaitley said after implementation of GST, food items and other essential items will be taxed at Zero rate. He said there has been decline in credit off-take, which is mainly global slow-down. Mr Jaitley hoped that under GST regime, tax evasion will be difficult because of technological applications. <br/><br/>On exemptions of petroleum and alcohol from the GST, the Finance Minister said these items are part of GST regime but have been left for the GST Council to decide in future. On Real Estate, he said some suggestions had been received to include it in the GST net and it will be taken up by GST Council later. <br/><br/>Mr Jaitley also said, the government's proposal to launch electoral bonds is aimed at cleansing the system of funding to political parties. Replying to a debate on the Union Budget in the Rajya Sabha, Finance Minister Arun Jaitley invited suggestions from all the political parties for making the process of funding more transparent. <br/><br/>He said,the electoral bonds will ensure clean donations while ensuring anonymity of the donor. Mr Jailtey also referred to a Budget proposal to cap the cash donations at 2,000 rupees against 20 thousand rupees earlier.<br/><br/>He also rejected a suggestion for making PAN and Aadhaar mandatory for cash donations, saying it is not feasible, particularly in rural areas.

Finance Minister Arun Jaitley has said the demonetization of high value currency gave a shock to the country's informal economy leading to expansion of the formal economy. <br/><br/>Replying to a discussion on General Budget for 2017-18 in the Rajya Sabha, he said 18 lakh bank accounts have come under the scanner of Income Tax Department as there are several mismatches between the income and tax profile. <br/><br/>Giving details of the benefits to the economy following demonetization, Mr Jaitley said the tax collection has gone up during November and December 2016 barring few states. He said the people have supported the demonetization. <br/><br/>The Finance Minister said adequate funds have been allocated for several sectors including Infrastructure, Agriculture, SC,ST sub-plans. He said the government has infused capital into banks and will infuse if required. <br/><br/>On Non Performance Assets (NPAs) of the banks, Mr Jaitley said they are linked to 15 to 20 big accounts which have been a legacy of the past. On farm loans waiver, he said the concerned state will have to do it out of its own resources though the Centre will continue to help the states as it has been doing in the past. <br/><br/>Mr Jaitley said after implementation of GST, food items and other essential items will be taxed at Zero rate. He said there has been decline in credit off-take, which is mainly global slow-down. Mr Jaitley hoped that under GST regime, tax evasion will be difficult because of technological applications. On exemptions of petroleum and alcohol from the GST, the Finance Minister said these items are part of GST regime but have been left for the GST Council to decide in future. On Real Estate, he said some suggestions had been received to include it in the GST net and it will be taken up by GST Council later.