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Posted On : 17 Mar, 2017  Source : PTI  Place : New Delhi 
No proposal to withdraw new Rs 2,000 notes: Jaitley
Finance Minister Arun Jaitley on Friday said there is no proposal to withdraw the Rs 2,000 notes that were introduced post demonetisation.

The Rs 2,000 banknotes were introduced along with new Rs 500 currency following the withdrawal of old Rs 500 and Rs 1,000 notes from November 9, 2016.

"There is no proposal to withdraw the Rs 2,000 denomination banknote," the minister said in a written reply in the Lok Sabha.

Jaitley further said the Rs 500 and Rs 1,000 notes returned to currency chests of the RBI amounted to Rs 12.44 lakh crore (as on December 10, 2016).

The data obtained in this regard would need to be reconciled with the physical cash balances to eliminate counterfeit notes, accounting errors and possible double counts after which only the final figures will be arrived at, he said.

He added that as on March 3, 2017 the currency in circulation was Rs 12 lakh crore and as on January 27, it was Rs 9.921 lakh crore.

Jaitley said the cash recall seeks to create a new "normal" wherein the GDP will be bigger, cleaner and real.

"This exercise is part of the government's resolve to eliminate corruption, blackmoney, counterfeit currency and terror funding.

"This exercise has resulted in an increase in deposits with banks. This will facilitate reduction of interest rates and provide more headroom to banks to expand their credit base," the minister said.

Following demonetisation, several restrictions were imposed on withdrawal from banks as well as ATMs. The restrictions have been gradually removed.

Govt expects to raise Rs 2,82,212 crore from cess in 2017-18

An estimated Rs 2,82,212 crore revenue will be generated through cess and surcharge in 2017-18, Finance Minister Arun Jaitley said today.

Jaitley said in Lok Sabha that the total revenue generated through cess and surcharge during 2014-15 was Rs 1,19,276.65 crore, which increased to Rs 2,65,661.61 crore in 2016-17.

"The estimated revenue likely to be generated through cess and surcharge in the financial year 2017-18 is Rs 2,82,211.98 crore," he said during Question Hour.

The Minister said under the Income Declaration Scheme 2016, a surcharge under the name of Krishi Kalyana Cess was levied at the rate of 25 per cent of the tax, that is at the rate of 7.5 per cent of the undisclosed income declared under the scheme.

The Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana (2016) has been introduced under which a surcharge under the name of Pradhan Mantri Garib Kalyan Cess at the rate of 33 per cent of tax is levied.

Jaitley said 'Education Cess on Income Tax' at two per cent and 'Secondary and Higher Education Cess' at one per cent, are levied by the government every year through the Finance Act.

Originally, the education cess was introduced in the tax proposals of budget 2004 and secondary and higher education cess was introduced in the tax proposals of budget 2007.

The Minister said the Finance Bill 2017 has proposed to levy a new surcharge for 2017-18 in case of an individual, Hindu undivided family, association of person, body of individuals or artificial juridical person at the rate of 10 per cent of such tax, where the taxable income exceeds Rs 50 lakh but does not exceed Rs one crore.

Replying a supplementary, Jaitley said such cess and surcharges were levied so that the government could spend the amount in building roads, schools, hospitals and building and other infrastructure.