Income Tax benefits for electronic payments in 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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About the author

Mani Karthik

As an NRI (Non-Resident Indian), I've lived in the USA, India & Middle East for over a decade, in over 6 cities like Mountain View, Dubai, San Jose, Fort Lauderdale, Kochi, and Chennai. I've worked for small and big companies and recently started my own startup. On this blog, I share everything I've learned in life, living abroad as an NRI with my roots in India. Everything from personal finance to immigration. I'm on a mission to help all NRIs return to India. WhatsApp me at +001-408-489-4785 if you have questions.

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Having lived in the USA, India and UAE, I share everything that I’ve learned in life. My aim is to help people by sharing whatever I know, through this blog. Come join my pursuit in becoming a smarter, richer & happier person! About Me!