CBDT asks banks to refund charges collected this year on e-transactions
New Delhi | Jagran Business Desk: The Central Board of Direct Taxes (CBDT) has asked banks to refund the charges collected after January 1, this year, on the transactions carried out using electronic modes, news agency ANI reported on Sunday.
It may be noted that Section 10A of the Payment and Settlement Systems Act, 2007 which was inserted by the Finance Act provides that no bank or system provider shall impose and charge on a payer, or a beneficiary receiving payment, through electronic mode prescribed under Section 269SU of the Act.
Based on the same, a circular released by the bank last year quoted that "any charge including the MDR shall not be applicable on or after January 1, 2020 on payment made through prescribed electronic modes," as per a December 31, 2019 report by news agency IANS.
Central Board of Direct Taxes (CBDT) asks banks to refund the charges collected after January 1, 2020 on transactions carried out using electronic modes pic.twitter.com/e0hkTUgyC7— ANI (@ANI) August 30, 2020
Sunday's development will encourage the digital payments in the country. Common modes of digital payment include, Debit cards, Unified Payment Interface, BHIM UPI QR code, and more. UPI is becoming increasingly popular as a mode of payment in India. Both customers and businesses across the country are increasingly realising the friction and frustration involved in handling cash, especially after having had experienced seamless digital payments.
CBDT is a part of Department of Revenue in the Ministry of Finance. It provides inputs for policy and planning of direct taxes in India, and is also responsible for administration of direct tax laws through the IT Department.
Posted By: Lakshay Raja