INDIA; In an attempt to curb black money transactions, the government has introduced a draft proposal that has provisions for income tax benefits for consumers who make a certain proportion of their expenditures through electronic means. If accepted, the proposal could also penalise cash transactions
In his Budget speech, Finance Minister Arun Jaitley had said “one way to curb the flow of black money is to discourage transactions in cash. I therefore, propose to introduce soon several measures that will incentivise credit or debit card transactions and disincentivise cash transactions.”
Towards this, the government’s proposal, introduced on Monday, recommends a slew of changes to incentivise electronic transactions. “Tax benefits in terms of income tax rebates to be considered to consumers for paying a certain proportion of their expenditure through electronic means,” said the government’s proposal..