Five key things to know about tax rebate on card payments

With an aim to move towards cashless economy, the government has proposed tax rebates on payment via credit and debit cards.

Here's all you need to know about the proposal:

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• You will get tax rebates if you pay a certain proportion of your expenditure through electronic mode.  However, government has invited comments on it till June 29. You can post your comment on mygov.in.
• It has made mandatory to settle all high- value transactions of more than Rs 1 lakh through credit/debit cards.
• Shopkeepers will get tax rebate if they accept a significant value of sales through debit or credit cards. The draft says that an appropriate tax rebate may be extended to a merchant if he does, at least, 50 per cent value of the transactions through plastic money.
• Now, you don't need to pay transaction charges on purchase of petrol, gas and rail tickets with debit or credit cards as the government has proposed to do away with them.
• All the proposals are aimed at building a transactions history of an individual to enable improved credit access and financial inclusion, reduce tax avoidance and check counterfeiting of currency.