Credit card bill payment exempt from cash dealing limit

Restrictions on cash dealings of Rs2 lakh or more will not apply to credit card bill payments, business correspondents appointed by banks and issuers of prepaid instruments, the revenue department has said. The Finance Act 2017 banned cash transaction of Rs2 lakh or above with effect 1 April, with some exceptions. Through a notification, the income-tax department has exempted five entities from the purview of this section. These include receipts by a business correspondent on behalf of a banking company or cooperative bank; receipt by a company or institution issuing credit cards against bills raised in respect of one or more credit cards; receipt from an agent by an issuer of prepaid payment instruments; receipt by a white label ATM operator from retail outlet; receipt which is not includible in the total income under clause (17A) of section 10 of the I-T Act, 1961, have been excluded from the purview of the Section 269ST.

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