Income Tax Benefits of Electronic Payments in India

Income Tax Benefits of Electronic Payments in India

India is going to become a nation with cashless economy, because of the demonetization concept of prime minister Narendra Modi.  He takes this decision to wipe out the black money from India. All corruption will decrease when the transaction or payment done without cash. Now most of the people are using mobiles wallet apps for various payments.

There are number of mobile wallet apps available for this purpose. PayTM, Oxigen, MobiKwik, PayUMoney, Ultracash – (Pay via mobile without internet) etc are the most popular mobile wallet apps. The user can easily make payment/ transaction with this apps without money in hands. There is no need to write a check, or handle any paper money. 

Credit cards and debit cards are the main methods of electronic payments. As a result the usage of debit card is increasing day by day. Till 31 December 2016, the Govt. will not charge the service charge on debit cards. Most of the merchants are now using a digital payment system for business. Even a small businessman has a  point of sale machines for the smooth payment. The RBI allows you to keep money range from Rs. 1000 to 20, 000 in the e- wallets.

Advantages of paying taxes online

You can pay taxes from any location at any time through net-banking account. Those Online payment allow Instant transfer of funds from your account. The writing on e-challan will be directly sent to Income Tax Department. The difference is Banks will not do any data entry. You have option to save/print the challan copy and the receipt copy too.

As soon as your Bank authorizes payment of the amount, you will receive a clear, legible receipt/counterfoil from your Bank. The Transaction id of the e-payment transaction will be available to you in your bank statement for future reference. You can check online if your money has actually reached the I-T Department. For this purpose you have to go to Tax Information Network Website. 

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