Proposal on Tax Benefits on Electronic Payments (like through Credit Card)

[Sushubh]

Centre proposes IT benefits for people making payments through credit, debit cards — www.thehindu.com

The National Democratic Alliance government on Monday proposed income tax benefits for people making payments through credit or debit cards and doing away with transaction charges on purchase of petrol, gas and rail tickets with plastic money.

In a draft paper for moving towards cashless economy and reduce tax avoidance, the government also proposed to make it mandatory to settle high value transactions of more than Rs 1 lakh through electronic mode.

In order to incentivise shopkeepers, it has proposed tax rebate to them provided they accept a significant value of sales through debit or credit cards.

 

[gopichandpai]

Something sensible!

 

[LordSpymaster]

Gives me hope.
Plus smart move of trying to create demand of services that enforce white money.

 

[SVK]

Now isn't that good decision by Modi govt?
I really hope its implemented soon, could bring down some expenses.

 

[amish]

Whats wrong with payment through Net banking?!! It should also get tax benefit.

Even NEFT / RTGS / IMPS should get benefit.

Any kind of ECS / Direct debit should also get benefit.

 

[Sushubh]

It should get free first. :\

 

[amish]

Credit card is also not free! You pay annual charges.

Sometimes there are transaction charges too - like railway tickets.

 

[Sushubh]

credit cards can be free. it depends upon what kind of deal you can get from your service provider.
plus, you get 50 days worth of interest free loan which is pretty cool.
on good cards, you can actually save money per month in cashback and other benefits.
convenience fees is again retailer specific and it is not your bank which decides the fees...

if government wants to popularize electronic transactions, they need to make it free. cheques are free for christ's sake and it involves so much manual effort. you want to go electronic? you have to pick one from three different options and you have to deal with individual limits and charges on each of them. government should focus on simplifying this process.

 

[bhojv74]

Good move.

 

[SVK]

Aim of govt is to reduce cash transaction as when cash is involved, it generates black money (money not accounted anywhere).