26 Jan 2017
INDIA: Cash Transactions Set to be Taxed in Bid to Boost Digital Payments
All cash transactions with a value of more INR 50,000 (US$733) are to be taxed under new government proposals. The legislation also looks to abolish transaction charges on credit and debit card payments, while placing restrictions on cash transactions above a yet-to-be-specified limit.
The proposals are likely to be included in India’s upcoming 2017-18 budget and have been designed to discourage cash transactions while making digital payments more attractive. The measures follow last November’s move to take existing high value currency notes out of circulation as a way of curbing corruption and reducing tax evasion.
For further details see, INDIA: High Value Notes No Longer Legal Tender in Crackdown on Corruption and Tax Evasion.