CBDT Asks Banks to Refund Charges Collected from Customers After January 1, 2020, on Digital Transactions Through Debit Card, UPI and QR Mode
The CBDT on Sunday issued a circular advising the banks to immediately refund the charges collected from customers after January 1, 2020, on transactions carried out using the electronic modes. The CBDT even advised the banks not to impose charges on any future transactions carried through debit cards, UPI or UPI QR code modes.
New Delhi, August 30: The Central Board of Direct Taxes on Sunday issued a circular advising the banks to immediately refund the charges collected from customers after January 1, 2020, on transactions carried out using the electronic modes. The CBDT even advised the banks not to impose charges on any future transactions carried through debit cards, UPI or UPI QR code modes.
Issuing the circular, the CBDT cited Section 10A of Payment and Settlement Systems Act 2007 and said, "No Bank of system provider shall impose any charge on a payer making payment, or a beneficiary receiving payment through electronic modes prescribed under section 269SU of IT Act. Subsequently, vide notification no.105/2019 dated 30.12.2019 i) Debit Card powered by RuPay ii) Unified Payments Interface (UPI) (BHIM-UPI), and iii) Unified Payments Interface Quick Response Code (UPI QR Code) (BHIM-UPI QR Code) were notified as prescribed electronic modes under section 269SU of the IT Act." CBDT Issued Refunds of Over Rs 95,853 Cr to More Than 25.55 Lakh Taxpayers in India Between April 1 and August 25: Income Tax Dept.
Adding more, the government said, "CBDT has issued Circular no. 16/2020 on 30th August 2020 advising banks to immediately refund the charges collected, if any, on or after 1st January 2020 on transactions carried out using the electronic modes prescribed under section 269SU of the Income-tax Act and not to impose charges on any future transactions carried through debit cards, UPI or UPI QR code modes."
Here's what CBDT said:
The latest circular was released by CBDT after it received several complaints that banks were still imposing charges on electronic transfers from payers using a debit card, UPI or QR code modes.
(The above story first appeared on LatestLY on Aug 30, 2020 06:10 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).