Government proposes income tax benefits for debit/credit card payments
Government has come out with the proposal to provide income tax benefits for payments made through debit or credit cards. This will encourage electronic transactions and reduce the black money transactions.
Government is also proposing
No Transaction charges on card payments at petrol pumps, gas agencies and railway tickets
mandatory for all transactions above Rs 1 lakh to only be conducted electronically.
Encouraging shopkeepers - The government is also looking at encouraging shopkeepers and traders to accept electronic payments rather than cash. The draft said that appropriate tax rebate can be extended to a merchant if at least say 50% value of the transaction is through electronic means. Alternatively, 1-2% reduction in value added tax could be considered on all electronic trans...