1. Chief ministers’ panel for tax on cash transactions of Rs 50,000 and above

Chief ministers’ panel for tax on cash transactions of Rs 50,000 and above

Give tax incentive and subsidies to boost digital transactions, but levy a banking cash transaction tax on transactions of R50,000 and above, a chief ministers’ committee on digital payment said in its interim report to Prime Minister Narendra Modi on Tuesday.

By: | Published: January 25, 2017 8:34 AM

Give tax incentive and subsidies to boost digital transactions, but levy a banking cash transaction tax on transactions of Rs 50,000 and above, a chief ministers’ committee on digital payment said in its interim report to Prime Minister Narendra Modi on Tuesday.

The Committee, headed Andhra Pradesh chief minister Chandrababu Naidu, also recommended abolition of merchant discount rate (MDR) to make digital payments cheaper than cash.

The panel also suggested that there should be no retrospective taxation on merchants doing digital transactions.

  1. S
    S.K.Gupta
    Jan 25, 2017 at 4:51 am
    This recommendation is ill-conceived and ill-timed too. Such a meagre amount also attracting banking transaction tax can't be termed prudent by any yardstick. Perhaps the people must now brace themselves for payment of more and more taxes in one form or the other. What an irony?
    Reply
    1. V
      Vinaayak G
      Jan 25, 2017 at 4:55 am
      The Banks should be asked to close all their public dealing counters as they neither have money for withdrawal of their own by the account holders nor any real intention to serve them as per the customers' needs. This suggestion would involve the minimum cash handling by them. So where is the need for banks engaging the services of a huge battery of front office employees.
      Reply

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