DRAFT CABINET NOTE MOOTS INCENTIVES FOR E- PAYMENTS

NEW DELHI: Consumers and merchants can look forward to a host of incentives, including fee waivers and tax benefits on cashless payments, for which a draft Cabinet note has been circulated by the finance ministry.

The proposal would be presented before the Union Cabinet after the finance ministry incorporates comments and suggestions made by various ministries and departments. The draft contains as many as 30 measures to encourage e-payments.

The note has already incorporated the public feedback on a draft proposal for facilitating electronic transactions.

“The 30 points include removal of different kind of fees and charges on e-transactions and providing incentive for such payments. We will take it to Cabinet after comments are received from concerned departments,” an official source said.

It is proposed to provide income tax benefits to the persons paying a portion of their expenditure either through debit or credit cards and do away with transaction charges for purchase petrol, gas and rail tickets.

According to the proposal, all high-value transactions exceeding ` 1 lakh will have to be made through electronically and utility service providers would be encouraged to give incentives for card payments. Merchants are also likely to get a tax benefit for accepting 50% of the payment through electronic methods.

The proposal follows an announcement made by finance minister Arun Jaitley in his Budget speech that one way to curb black money was to discourage transactions in cash.