Tax benefit to small business: Centre

New Delhi: The Centre on Monday announced that small traders with a turnover of upto Rs 2 crore will pay two per cent  less tax on turnover generated from consumers through digital means to promote cashless economy.

As per section 44AD of the I-T Act, in case of certain assesses carrying on any business having a turnover of Rs 2 crore or less, the profit is deemed to be 8 per cent of the total turnover for taxation.

“It has been decided to reduce the existing rate of deemed profit of 8 per cent under section 44AD of the Act to 6 per cent in respect of the amount of total turnover or gross receipts received through banking channel/digital means for the financial year 2016-17,” CBDT said.