DIRECT TAXATION

CASE STUDY 5

In the modern Indian economy, payment methods account for a sizable percentage. In the
increasingly technological culture of the past, people find it simple to accept card transactions.
Instead than keeping money on hand for everyday transactions, many people prefer to use
IMPS. When using currency to make a payment, clients run the risk of losing money and having
trouble balancing their accounts. Digital payments are crucial to the system because they foster
greater accountability, enhance the efficiency of wealth transfer across business networks, and
impose restrictions on illicit financial activity. All agree that money is the foundation of every
institution.

Demonetization fosters more and more digital exchanges while diminishing but not entirely
eliminating the primary usage of real currency (banknotes and tokens). Transactions are paid
electronically in either a currency-using or non-cash-using nation utilising techniques like
direct deposit, credit lines, card payments, computerised settlement, and payment systems like
IMPS, Real Time Gross Settlement, and Electronic Funds Transfers in India.

The following are some benefits of using an electronic payment system:

a. The underground market, which is occasionally referred to as the comparable informal

sector and is mainly dependent on the financial transfers, is restricted by the
introduction of payroll software. Compared to traditional payments, settlements are
more easily available. Web footprints are typically left behind by online purchases.
b. Internet purchases are becoming more and more common for a variety of reasons,
including the incredible deal proposals made by online merchants, the expansion of
choose, the advancement of delivery services, free shipping, and 24-hour trade
movement. The formation of the "Smart Nation" has also been greatly assisted by the
phenomenal growth of retail.

The following limitations are among the many others that apply to this situation:

• Access to high-speed connections is still difficult in some Indian agricultural

and urban areas. Additionally, almost everyone in your country can use it
because of how expensive broadband connectivity is.
 • The main reason Indian authorities are hesitant to use an online experience is
because of terrorism-related worries. Electronic currencies include a number of
potential drawbacks, such as the potential for fraud, the exposure of commonly
known information, criminal conduct, dangers of malware and computer
viruses, etc.
• Businesses are the foundation of a demonetization even while organisations lay
the platform for electronic payroll. Additionally to failing to lay the groundwork
for a digital payment, that government's financial sector is unable to fulfil client
demands.

Conclusions :

India may very easily gradually transition to a computerized payments system with the
establishment of the requisite online payment networks. To do this, however, new, secure
banking reforms, powerful centralised senior management, and connections to actual financial
institutions, governmental organisations, and other marketing telecommunications firms will
all be necessary.

The provision of trustworthy and secure options, such as a mortgage will actually be required
to repay professional certification, a significant amount of financial journalism about there
customer accounts, the absence of any additional costs, the ability to manage their own funds,
and the repercussions of those steps which are accelerated by obtaining the necessary
information, are also essential to hasten the advancement of the non - contact nation's economy.

The reorganisation of rural areas is the biggest issue now affecting the Indian economy. The
government will implement the necessary steps to set the groundwork for Todays modern full
day of work from the traditional class industry to a new digital cashless economy by bringing
about visibility, adaptability, efficiency, quickness, and purchaser finance and insurance.