INCENTIVES FOR CARD PAYMENTS ON ANVIL

BILLING DETAILS Government moves draft Cabinet note, increased debit, credit card usage to curb black money flow

NEW DELHI: The government plans to come out with a set of measures to incentivise credit and debit card transactions as part of a broad strategy to wean people away from using cash and encourage banking and electronic payment channels. “A draft Cabinet note has been circulated for comments,” the Mid-Year Economic Analysis, tabled in Parliament on Friday, said in an annexure noting.

The government plans to come out with a set of measures to incentivise credit and debit card transactions as part of a broad strategy to wean people away from using cash and encourage banking and electronic payment channels.

“A draft Cabinet note has been circulated for comments,” the MidYear Economic Analysis, tabled in Parliament on Friday, said in an annexure noting.

Last week, the government notified that from January 1, individuals will have to disclose their income tax permanent account numbers (PAN) for cash transactions above ` 2 lakh as also settling hotel bills that exceed ` 50,000.

Quoting PAN will also be mandatory for those travelling overseas while booking air tickets and paying for tour packages if the total transaction amount exceeds ` 50,000. PAN would also be required to open a bank account, other than the one under the Pradhan Mantri Jan Dhan Yojana.

Another set of measures are expected in the coming months that will likely contain details on specific incentives for using electronic modes such as credit and debit cards.

The government had first indicated its intent to announce such measures in the budget.

In June, the finance ministry had put out a paper “Draft Proposals For Facilitating Electronic Transactions” seeking public comments on a set measures, including income tax benefits for individuals making payment through debit or credit cards. The paper had also proposed to do away with transaction charges on card payments at petrol pumps, gas agencies and railway tickets.

Besides, according to the paper,