Government proposed income tax benefits for people making payments through credit or debit cards.
It has also been proposed to do 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.
Furtureomore, tax rebate has also been proposed to incentivise shopkeepers if they accept a significant value of sales through debit or credit cards.
According to the draft proposals for facilitating electronic transactions on which the government has invited comments till 29 June, tax benefits in terms of income tax rebates to be considered to consumers for paying a certain proportion of their expenditure through electronic means.
Elets The Banking and Finance Post Magazine has carved out a niche for itself in the crowded market with exclusive & unique content. Get in-depth insights on trend-setting innovations & transformation in the BFSI sector. Best offers for Print + Digital issues! Subscribe here➔ www.eletsonline.com/subscription/
