Breaking News

Tax rebate on payments made using Debit And Credit Card

CAknowledge

Tax rebate on payments made using Debit And Credit Card, In order to encourage the people making payments through non cash means government of India always tries to implement new plans , proposals. Here we are providing complete details regarding Tax rebate on payments made using Debit And Credit Card. You can find everything related to Tax rebate on payments made using Debit And Credit Card in this article. Now you can scroll down below and check more details for “Tax rebate on payments made using Debit And Credit Card”

If you like this article then please like us on Facebook so that you can get our updates in future ……….and subscribe to our mailing list ” freely “

Tax rebate on payments made using Debit And Credit Card

As a part of this Government proposed to initiate tax benefits to those who pay certain portion of their expenses through Debit card and credit card. This certain portion should be decided by the government. This benefit is available to those Merchants who accept the payments in non cash means. This step of moving towards cashless transactions is very encouraging. In its draft proposal government has given some basic information about this plan.

In his Budget speech Finance minister Arun Jaitely said that the government is going to introduce several measure that will incentivise credit or debit card transactions and disincentivise cash transaction.

Must Read – Is rebate u/s 87A available for financial year 2016-17 ?

“An appropriate tax rebate can be extended to a merchant if at least say 50 per cent value of the transactions is through electronic means. Alternatively, 1-2 per cent reduction in value added tax could be considered on all electronic transactions by the merchants,”In order to encourage the people making payments through non cash means government of India always tries to implement new plans , proposals.
As a part of this Government proposed to initiate tax benefits to those who pay certain portion of their expenses through Debit card and credit card. This certain portion should be decided by the government. This benefit is available to those Merchants who accept the payments in non cash means. This step of moving towards cashless transactions is very encouraging. In its draft proposal government has given some basic information about this plan.

This draft proposal said that all “high value transactions of, say, more than Rs 1 lakh, should be settled only by electronic means”.

Recommended Articles

There’s also said that “”An appropriate tax rebate can be extended to a merchant if at least say 50 per cent value of the transactions is through electronic means. Alternatively, 1-2 per cent reduction in value added tax could be considered on all electronic transactions by the merchants,””.
It is also provided that this proposal will lay off the transaction cost on e payments so that it could be encouraging.

It includes a point that “utility service providers could be advised to give a discount to users for small ticket payments through e-payments, on the lines of BSNL, which provides an incentive of 1 per cent of the billed amount if the payment is done through electronic mode”. Once if it becomes effective No transaction charges will be levied on purchase of petrol, gas and rail tickets with plastic money.

It also suggested for rationalisation of the Merchant Discount Rate (MDR), which at present is 0.75 per cent on Debit Card transactions of up to Rs 2,000 and 1 per cent on all transactions above it.

“At present, banks have to report the aggregate of all the payments made by a credit cardholder as one transaction, if such an amount is Rs 2 lakhs in a year. To facilitate high value transactions, the ceiling of Rs 2 lakhs could be increased to say Rs5 lakhs or more.”

Ask Your Query

About VRP

I'm currently working as an intern.I'm passionate about entrepreneurship and technology. Feel free to ask your queries by reaching me at [email protected] or my Facebook profile.

Leave a Reply

Your email address will not be published. Required fields are marked *