Promoting Electronic Transactions - Govt Actions
Dear Friends:
Through our various whitepapers on subjects like corruption, black money, doing business we have been submitting recommendations to Government to minimize cash transactions in the system and promote electronic transactions.
We are pleased to share with you that the government has come out with a raft of proposals to encourage electronic transactions, including income tax benefits for payments made through debit or credit cards, a move aimed at cracking down on black money. Following is being evaluated:
Transaction charges on card payments at petrol pumps, gas agencies and railway tickets could be done away with.
The government may also make it mandatory for all transactions above Rs1 lakh to only be conducted electronically.
"Tax benefits in terms of income tax rebates to be considered to consumers for paying a certain proportion of their expenditure through electronic means,”.
The e-transactions will include those made through debit/credit cards, mobile wallets, apps, net banking, electronic clearing service, National Electronic Fund Transfer and immediate payment service (IMPS).
The government is also looking at encouraging shopkeepers and traders to accept electronic payments rather than cash.
“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 transactions by merchants,”.
Utility service providers such as electricity companies and telecom operators could offer a discount if subscribers paid their bills electronically, similar to state-owned BSNL that provides an incentive of 1% of the billed amount on electronic payments.
The government is also considering a levy of a nominal cash-handling charge on transactions greater than a specified level, implying that cash payment beyond a certain threshold may attract a transaction fee.
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 lakh in a year. The ceiling could be raised to Rs 5 lakh or more.
The government also proposed appropriate changes in the regulatory structure, if required, to promote mobile-based payment systems.
If you have inputs on additional ways through which electronic transactions can be promoted and cash transactions minimized, please share them.
Together, we have been creating the awareness, letting the issues, root cause and specific solutions be known to the top Government decision makers. This sets the stage for Government action in many cases because there is accountability to over 200,000 citizens. Some actions and reviews may take time but the idea is to get the Government to deliver them in the 5 year period as outlined in the manifesto.
I thank you for your continued participation in the circle!
Rajendra Pratap Gupta more
Through our various whitepapers on subjects like corruption, black money, doing business we have been submitting recommendations to Government to minimize cash transactions in the system and promote electronic transactions.
We are pleased to share with you that the government has come out with a raft of proposals to encourage electronic transactions, including income tax benefits for payments made through debit or credit cards, a move aimed at cracking down on black money. Following is being evaluated:
Transaction charges on card payments at petrol pumps, gas agencies and railway tickets could be done away with.
The government may also make it mandatory for all transactions above Rs1 lakh to only be conducted electronically.
"Tax benefits in terms of income tax rebates to be considered to consumers for paying a certain proportion of their expenditure through electronic means,”.
The e-transactions will include those made through debit/credit cards, mobile wallets, apps, net banking, electronic clearing service, National Electronic Fund Transfer and immediate payment service (IMPS).
The government is also looking at encouraging shopkeepers and traders to accept electronic payments rather than cash.
“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 transactions by merchants,”.
Utility service providers such as electricity companies and telecom operators could offer a discount if subscribers paid their bills electronically, similar to state-owned BSNL that provides an incentive of 1% of the billed amount on electronic payments.
The government is also considering a levy of a nominal cash-handling charge on transactions greater than a specified level, implying that cash payment beyond a certain threshold may attract a transaction fee.
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 lakh in a year. The ceiling could be raised to Rs 5 lakh or more.
The government also proposed appropriate changes in the regulatory structure, if required, to promote mobile-based payment systems.
If you have inputs on additional ways through which electronic transactions can be promoted and cash transactions minimized, please share them.
Together, we have been creating the awareness, letting the issues, root cause and specific solutions be known to the top Government decision makers. This sets the stage for Government action in many cases because there is accountability to over 200,000 citizens. Some actions and reviews may take time but the idea is to get the Government to deliver them in the 5 year period as outlined in the manifesto.
I thank you for your continued participation in the circle!
Rajendra Pratap Gupta more
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View all 105 comments Below 105 comments
strict implementation be ensured that no transaction be permitted in cash beyond ten thousand in cash. I have seen people transact lacs in cash specially those dealing in building materials. more
Jul 02
GO FOR RISTECTING ANY PURCHASE MORE THAN 20,000 WITH CASH WILL BE CALCULATE FOR IT LIABLE. THEN ALL WILL USE E TRANSECTION OR BY CHEQ PAYMENT more
Jul 01
In urban areas most of the merchants are equipped with card payment machines, so here we can easily target more and more transactions through card. To promote card usage: 1. Do away all charges on usage of card how small is transaction 2. Educate more and more people about card transaction, this can be done n=by spreading awareness at the point of sale itself. This can be achieved by distributing card usage pamphlet etc at petrol pump more
Jun 27
I would like to comment on a different topic. The forces opposed to BJP government have been trying their best to create confusion among public minds. I refer to Lalit Modi issue. Day in and day out the TV channels have been blaring as if Sushma Swaraj ji and Vasundara Raje ji have committed great crimes. After all carrying on the compaign for so long involves cost. Government should find out through RAW or by any other organisation of the government as to who is financing these channels. People running these channels are also liable to err or commit illegal activities. GOVT. should secretely find out such activities and punish the persons involved. Modiji and other leaders should not get discouraged. They will definitely get the support of the common people. more
Jun 27
