Niti Aayog expected to recommend tax exemption for digital payments

While people are still finding their way around the challenges that the demonetisation of old currency has brought about, the Niti Aayog seems to be pushing for some radical suggestions to do with digital payments. According to a report in Bloomberg, the panel is suggesting that Indian citizens should be offered tax exemptions if they are making payments through digital modes. It has also recommended that there should be a penalty for cash transactions. This is to ensure that more individuals opt for electronic payments over cash transactions. Niti Aayog has also suggested that the government should scrap rules which prevent certain items such as medicines from being sold online. These recommendations are being suggested keeping in mind the shortage of the new bank notes, so that people are less dependent on it. According to the report, the panel has also recommended changes in warehousing act to include manufactured goods. This will enable vendors selling products online to raise loans against inventory.