NIZAMABAD: In the long run demonetisation will give enormous impetus to the economy, the problems being faced due to the decision were only temporary, president of the Institute of Chartered Accountants of India M. Devaraja Reddy said.
Delivering a keynote address at the seminar titled ‘Gnanodaya-2017’ organised by the Nizamabad CPE Chapter of ICAI, here on Monday, he said he was sure that by end of March things would be encouraging for all people. After GST comes into effect coupled with the impact of invalidation of higher denomination notes the systemic correction will show positive results, the president of ICAI added.
Ethical practice
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Banks were parked with huge quantity of money and they were now able to extend loans to the needy at lower interest rates. In the next few months the real estate and construction activity will flourish.
Transparency in transactions will improve and money laundering and tax evasion will eventually disappear, he said.
Widely quoting from the Bhagavadgeetha to emphasis the importance of ethics in profession Mr. Devaraja Reddy said that the demonetization decision was an opportunity for business people and tax practitioners to correct their practice. Unethical accumulation of wealth was not good and might result in unhappiness in families, he said.
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Setting standards
Painting a rosy picture of the economy the senior chartered accountant predicted that the New Year would be brighter for all though the invalidation of the currency may not be a panacea for every ill. He advised the young tax practitioners, auditors and students follow the auditing and accounting standards. Mutual trust and confidence between the auditors, banks and business people was the sine-qua non, he said.
Earlier senior CA Sreepada Kumara Sarma welcomed the guests. Assistant Commissioner of Income Tax K. Udayakishan Rao, officers from Customs and Central Excise and Commercial Taxes, local tax practitioners and business community felicitated Mr. Devaraja Reddy.