{"id":18560,"date":"2020-08-30T20:50:01","date_gmt":"2020-08-30T20:50:01","guid":{"rendered":"https:\/\/bengalnewstimes.com\/?p=18560"},"modified":"2020-08-30T20:50:01","modified_gmt":"2020-08-30T20:50:01","slug":"cbdt-to-banks-dont-impose-fees-on-digital-transactions-refund-charges-collected-from-january","status":"publish","type":"post","link":"https:\/\/bengalnewstimes.com\/?p=18560","title":{"rendered":"CBDT to banks: Don&#8217;t impose fees on digital transactions; refund charges collected from January"},"content":{"rendered":"<p><\/p>\n<div>\n<div class=\"article-image\">\n<figure><img loading=\"lazy\" decoding=\"async\" class=\"lazy lazy-hidden wp-image-2041573 size-full\" data-lazy-type=\"image\" src=\"https:\/\/images.financialexpress.com\/2020\/07\/1-1133.jpg\" alt=\"\" width=\"660\" height=\"440\" srcset=\"\" sizes=\"auto, (max-width: 660px) 100vw, 660px\"\/><noscript><img loading=\"lazy\" decoding=\"async\" class=\"lazy lazy-hidden wp-image-2041573 size-full\" data-lazy-type=\"image\" src=\"https:\/\/images.financialexpress.com\/2020\/07\/1-1133.jpg\" alt=\"\" width=\"660\" height=\"440\" srcset=\"\" sizes=\"auto, (max-width: 660px) 100vw, 660px\"\/><noscript><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-2041573 size-full\" src=\"https:\/\/images.financialexpress.com\/2020\/07\/1-1133.jpg\" alt=\"\" width=\"660\" height=\"440\" srcset=\"https:\/\/images.financialexpress.com\/2020\/07\/1-1133.jpg 660w, https:\/\/images.financialexpress.com\/2020\/07\/1-1133-300x200.jpg 300w, https:\/\/images.financialexpress.com\/2020\/07\/1-1133-620x413.jpg 620w, https:\/\/images.financialexpress.com\/2020\/07\/1-1133-401x267.jpg 401w, https:\/\/images.financialexpress.com\/2020\/07\/1-1133-440x293.jpg 440w, https:\/\/images.financialexpress.com\/2020\/07\/1-1133-80x54.jpg 80w, https:\/\/images.financialexpress.com\/2020\/07\/1-1133-313x209.jpg 313w\" sizes=\"auto, (max-width: 660px) 100vw, 660px\"\/><\/noscript><\/noscript><span class=\"article-caption\">CBDT had on December 30, 2019, clarified that any charge including MDR should not be applicable on or after January 1, 2020, on payment through prescribed digital modes.<\/span><\/figure>\n<\/div>\n<p>Central Board of Direct Taxes (CBDT) on Sunday has advised banks to refund charges collected by them on electronic transactions. \u201cBanks are advised to immediately refund the charges collected, if any, on or after January 1, 2020, on transactions carried out using the electronic modes prescribed under section 269SU of the IT Act,\u201d a circular by the board signed by Ankur Goyal, Under Secretary to the Government of India read. The circular also asked banks to not impose charges on any future transactions as well \u201ccarried through the said prescribed modes\u201d such as debit card powered by RuPay, BHIM-UPI, and UPI QR Code.<\/p>\n<p>According to the circular, representations have been received that some banks are imposing and collecting charges on transactions carried out through UPI. A certain number of transactions are allowed free of charge beyond which every transaction bears a charge. \u201cSuch practice on part of banks is a breach of section 10A of the Payment and Settlement Systems (PSS) Act as well as section 269SU of the IT Act.\u00a0Such breach attracts penal provisions under section 271DB of the IT Act as well as section 26 of the PSS Act 2007,\u201d Goyal said in the circular.<\/p>\n<p><strong>Also read:\u00a0<a href=\"https:\/\/www.financialexpress.com\/industry\/sme\/paytm-malls-entire-database-hacked-due-to-company-insider-hacker-demands-ransom\/2069737\/\">Paytm Mall\u2019s \u2018entire database\u2019 hacked due to company \u2018insider\u2019; hacker demands\u00a0ransom<\/a><\/strong><\/p>\n<p>The IT Act provided businesses with a turnover of over Rs 50 crore in the immediately preceding year shall \u201cmandatorily provide facilities for accepting payments through electronic modes\u201d. The government later had also inserted a new provision called section 10A in the PSS Act according to which banks should not impose any charge on a payer making a payment or a beneficiary receiving payment through electronic modes prescribed under Section 269SU of IT Act. The board had on December 30, 2019, clarified that based on section 10A of the PSS Act any charge including merchant discount rate (MDR) should not be applicable on or after January 1, 2020, on payment through prescribed digital modes. Multiple banks charge Rs 2.5 for UPI transactions up to Rs 1,000 and Rs 5 for transactions above Rs 1,000 excluding GST.<\/p>\n<div class=\"common-bottom-text\">\n<p>Get live <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/\" target=\"_blank\" rel=\"noopener noreferrer\">Stock Prices<\/a> from <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/s-p-bse-sensex-stock-price\/\" target=\"_blank\" rel=\"noopener noreferrer\">BSE<\/a>, <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nifty-50-stock-price\/\" target=\"_blank\" rel=\"noopener noreferrer\">NSE<\/a>, <a href=\"https:\/\/www.financialexpress.com\/investing-abroad\/\" target=\"_blank\" rel=\"noopener noreferrer\">US Market<\/a> and latest NAV, portfolio of <a href=\"https:\/\/www.financialexpress.com\/mutual-funds-india\/\" target=\"_blank\" rel=\"noopener noreferrer\">Mutual Funds<\/a>, calculate your tax by <a href=\"https:\/\/www.financialexpress.com\/income-tax-calculator\/\" target=\"_blank\" rel=\"noopener noreferrer\">Income Tax Calculator<\/a>, know market\u2019s <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nse-top-gainers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top Gainers<\/a>, <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nse-top-losers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top Losers<\/a> &amp; <a href=\"https:\/\/www.financialexpress.com\/mutual-funds-india\/equity-funds\/\" target=\"_blank\" rel=\"noopener noreferrer\">Best Equity Funds<\/a>. Like us on <a href=\"https:\/\/www.facebook.com\/thefinancialexpress\" target=\"_blank\" rel=\"noopener noreferrer\">Facebook<\/a> and follow us on <a href=\"https:\/\/twitter.com\/FinancialXpress\" target=\"_blank\" rel=\"noopener noreferrer\">Twitter<\/a>.<\/p>\n<p class=\"telegram-text\"><img loading=\"lazy\" decoding=\"async\" class=\"telegrma_img\" src=\"https:\/\/images.financialexpress.com\/2020\/04\/telegram.png\" alt=\"\" width=\"24\" height=\"24\" style=\"margin: 0px 5px 4px 0px; float: left;\"\/>Financial Express is now on Telegram. <a href=\"https:\/\/t.me\/TheFinancialExpressOnline\" target=\"_blank\" rel=\"noopener noreferrer\">Click here to join our channel<\/a> and stay updated with the latest Biz news and updates.<\/p>\n<\/div>\n<\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><a href=\\\"https:\/\/www.financialexpress.com\/industry\/banking-finance\/cbdt-to-banks-dont-impose-fees-on-digital-transactions-refund-charges-collected-from-january\/2069794\/\\\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>CBDT had on December 30, 2019, clarified that any charge including MDR should not be applicable on or after January 1, 2020, on payment through prescribed digital modes. Central Board of Direct Taxes (CBDT) on Sunday has advised banks to refund charges collected by them on electronic transactions. \u201cBanks are [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":18561,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[36],"tags":[],"class_list":["post-18560","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking-business"],"jetpack_featured_media_url":"https:\/\/bengalnewstimes.com\/wp-content\/uploads\/2020\/08\/upi-pti.jpg","_links":{"self":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts\/18560","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=18560"}],"version-history":[{"count":0,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts\/18560\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/media\/18561"}],"wp:attachment":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=18560"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=18560"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=18560"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}