credit card bill payment exempt from money managing limit

New Delhi, Jul 4 Restrictions on money dealings of Rs 2 lakh or more won't have any significant bearing to credit card bill payments, business reporters named by banks and backers of prepaid instruments, the income office has said.

The Finance Act 2017 restricted money exchange of Rs 2 lakh or above with impact April 1, 2017. Be that as it may, a few special cases were made.

Through a notice, the Income Tax Department has exempted five elements from the purview of this Section.

These include receipts by a business correspondent on behalf of a banking company or co-operative bank; and receipt by an organization or foundation issuing credit cards against bills raised in respect of one or more credit cards.

Receipt from a specialist by a guarantor of pre-paid payment instruments, receipt by a white label ATM operator from retail outlet and receipt which is not includible in the total income under clause (17A) of area 10 of the I-T Act, 1961, have been prohibited from the domain of the Section 269ST.

"The warning should be regarded to have come into constrain with impact from the April 1, 2017," the income division said. The warning is dated July 3.

Nangia and Co Director Shailesh Kumar said this would give truly necessary alleviation to the saving money part and furthermore to the provincial segment and expel hardship in these real cases.

"With a specific end goal to give alleviation to certain veritable cases, which are additionally directed under different other government laws identifying with saving money and installments, the administration has now issued a notice exempting certain money exchanges from this farthest point," Kumar said.

Prior, the division had said that the Rs 2 lakh limitation won't have any significant bearing on receipts by government, managing an account organization, post office investment funds bank or co-agent bank.

The area embedded in the Income Tax Act from the earliest starting point of this financial bans money dealings of Rs 2 lakh or more on a solitary day, in regard of a solitary exchange or exchanges identifying with one occasion or event from a person.

Negation of Section 269ST would involve impose of 100 for every penny punishment on beneficiary of the sum.

The move to ban cash exchange over a limit was gone for controling dark cash by disheartening money exchange and promoting digital economy.

The duty division has officially avised people having information with respect to such money dealings to tip-off the assessment office by sending an email to blackmoneyinfo@incometax.gov.in . This email address was begun in December a year ago post the demonetisation of 500 and 1,000 rupee notes.

It had then gotten some information about transformation of dark cash into white to illuminate the administration through this mail id. Post the demonetisation of 500 and 1,000 rupee notes, people with wealth had illegally converted their black held in old notes to new 500 and 2,000 rupee notes.