TAX SAVING FOR FREELANCERS, PROFESSIONALS, TRADER & WEB BASED AGENCIES

Advantages and disadvantages of cashless economy

Advantages and disadvantages of cashless economy

All of us have been through lot of commotion confusion after demonetization, as situation now has reached normalcy. Most of us have now started being cashless i.e making digital payments, by using net banking, Mobile payments etc. 

  • After 2016 ended many of us have started using banking system more frequently and effectively. Being cashless has lot of advantages, first of all there is no need to carry more cash. 
  • No need to stand in long ATM queues for cash withdrawal. Owing to this lot of people have opened bank accounts and trying to use digital way of payments. 
  • Still in many rural areas people are not so accustomed to such modes of payments, but rest of India is trying to be digital. Most of us are paying our grocery, water electricity house help money through online way.
  • Most of the transactions have become transparent hence helping in curbing black money. As government has made it mandatory thus all shady transactions are coming under the light.
  • We get lot of discounts and free stuff while being cashless. Thus motivating people.
  • There is proper trail of the transaction, hence the tracing the transaction becomes more perfect.
  • As people start taking less cash hence theft of cash is reduced. If any of our cards are lost we can block them easily.
  • On can plan the expenses and have budget in control. Thus, if Income tax people ask some query we can present the details very easily.
  • Some benefits are as follows,

Service tax :

Waiver of service tax of 15% on digital transactions up to `2,000. 

Fuel :

0.75% discount on digital purchase of fuel through credit/debit cards, e-wallets or mobile wallets. 

Rail tickets :

0.5% discount on monthly and seasonal suburban railway tickets from 1 January 2017. Online rail ticket buyers get up to `10 lakh free accident insurance too. 

Rail catering :

 5% discount  .. 


  • There are some disadvantages also, there can identity theft hence one has to be careful about it.
  • Most of the payments through bank OTP is generated hence mobile phones play a vital role. Any theft of phone means losing valuable information, hence have to be very careful with it.
  •  Internet connectivity is very vital for going digital, there are places where such facilities are yet to reach.
  • Learning new way of payments can be confusing for people from rural areas and old people.

Conclusion: 

Thus cashless is a boon and also has its own obstacles and its proficiency to be followed and achieved.


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