Taxpayers in India may soon be having the option of paying their taxes by using digital payment modes such as UPI, internet banking and digital wallets. This could actually be considered beneficial finance news, as it certainly would help tax payers ease the process of paying taxes. The aim of this move was not only to bring more people under the tax umbrella but also to boost digital payments.
If this finance related news is to be believed, it could also mean that assesses can not only pay taxes easily but you could also avail a new Permanent Account Number. Tax payers could also file and track Income Tax Returns within minutes.
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The Central Board of Direct Taxes is currently working on developing a new app named ‘My Pay’ that could help manage all tax related issues as well as provide the option of making payments using credit card, debit card and internet banking. The tax department also intends to make use of this app for communicating with taxpayers regarding any issues. Although the app process is currently in the preliminary stage, the Central Board of Direct Taxes is still working on issuing PAN on a real time basis making use of the e-KYC facility. This facility enables an individual to verify important details such as thumb impressions etc.
Along with this the Central Board of Excise and Customs (CBEC) has been requested to provide services similar to this for taxpayers. This will enable tax payers to make custom duty and baggage duty allowance payment by making use of other payment modes apart from credit and debit cards.
A roadmap was charted in the financial reports submitted by the, former Financial Secretary Ratan Watal to the Finance Minister Arun Jaitley in December 2016, to reduce India’s cash-to-GDP ratio to 6 percent from a 12 percent over a period of three years by encouraging and boosting digital payments. This app could actually benefit a lot of people by enabling them to pay taxes online, apply for PAN and track tax returns.
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