NEW DELHI : The Central Board of Direct Taxation (CBDT) has notified an amendment to the income tax rules granting a tax benefit to investments by licensed payment service providers in Open Network for Digital Commerce Ltd., a non-profit company profit promoting e-commerce.
According to data available from RBI, more than 60 entities have been authorized as payment service providers, including entities such as Clearing Corporation of India Ltd., National Payments Corporation of India (NPCI) and American Express Banking Corp. .
The 2022 Income Tax (Tenth Amendment) Rules, which came into effect on Friday, show that payment system providers are entitled to tax exemption under Section 11 of the Income Tax Act. income to invest in ONDC Ltd.
The notification indicates that a new provision is being introduced under Rule 17C of the Income Tax Rules to ensure that investment by authorized payment service providers in share capital or bonds or debentures Open Network for Digital Commerce Ltd., an authorized method of payment. investment for exemption under Section 11 of the Income Tax Act.
These investments will enable the investor to participate in network-based open protocol models that enable digital commerce and interoperable digital payments in India. This decision is expected to contribute to the growth of e-commerce.