Reverse migration has begun, says FM Nirmala Sitharaman

The event was organised by the Institute of Chartered Accountants Of India, Southern India Regional Council in Bengaluru.

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‘Bring more informal businesses’

Sitharaman appealed to chartered accountants to bring more informal businesses on the formal side so that they can reap the benefits of the open world.

According to her, small businesses prefer to remain informal because they fear that they will have to pay taxes and taxmen can go after them.

Sitharaman said the fears were unfounded as allowing informal businesses to become formal businesses was not just about paying taxes. She pointed out that there was a likelihood of not paying tax at all even after coming on to the formal.

“You are coming on to the system because you can reap the benefits of the open big world into which a lot of people are coming on board,” the finance minister said.

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Advantages of digital payments

She told the gathering that digital payments have made transactions easy with speed and access to newer markets, which is good for businesses.

The finance minister told chartered accountants that there was a need for a digital revolution even in small businesses.

She said there is a sense of fear among people that if they opt for formal business they will have to submit accounts every year and file returns each year.

“It means I am opening my systems up so that taxman is going to be after me – That is the fear which has to go out of people’s minds because the benefits that you reap once you come on to the system is far more than what you can account for now,” Sitharaman underlined.

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