Income Tax benefits for electronic payments in India

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Written By Mani Karthik

I share everything I learned in life on this blog. Everything from personal finance tips to life hacks that'll make you a smarter person. Founded BackToIndia - on a mission to help NRIs move back to India.

Can India be a cashless economy? Is that the intention of demonetization? Well, these are some the questions that arose in everyone’s mind when Prime Minister Narendra Modi brought the demonetization concept in India. Following this, in the budget 2017, the Government may announce a string of measures to take India in a path of the cashless economy. There is also a huge promotion going on for plastic money and people are asked to use more transaction using cards or for instance, do a digital payment.

In this situation, the customers and retailers are in a win – win situation for adopting the digital payment mode. Especially the ones who are running the small business would be encouraged to acquire the point of sale machines to facilitate the payment.

The major intention of demonetization was to curb the black money which gets generated when the transactions are made in cash which has no records.

Another good thing here is that demonetization has helped in increasing the usage of debit cards. Hence, the Government has decided not to charge the service charge on debit cards till the December 31,2016. This move in intended to ensure more digital transactions in the country.

Here is another good news for you folks, the RBI has also doubled the limit on the balance that can keep in e-wallets. The limit has been increased from Rs.1000 to Rs.20,000. That was a big change.

It is great to see such changes in our country. At least, the amount of corruption and black money overboard will be reduced drastically by taking such measures. Of course, the cooperation from all the citizens is a must.

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