Are you using credit card or has taken any loan from banks, if yes then get ready to see some additional charges being levied on your credit card EMI or loan EMI w.e.f November 2016.
w.e.f November 2016 Govt. Of India has asked the banks to charge extra or additional 15% tax for the interest the bank charges on EMIs.
Now, let me explain you this in better way. Suppose you bought a product using your credit card and converted the same purchase into multiple EMIs, earlier before 1st November 2016, credit card issuing bank used to levy some interest rate on your EMIs and you used to pay the same only along with the actual value of product price divided by the tenure for which you had taken the EMI.
Now, WEF 1st November 2016, all the credit card issuing banks or loan lender banks has to levy another additional tax of 15% (ST 14% + SBC 0.5% + KKC 0.5%) on the interest charged on the EMI.
That is another 15% tax burden on consumer.
|Additional 15% tax on credit card or loan EMIs|
No prior notice or circular shared with anyone and Govt. implemented this additional burden on its citizen who voted them to power.
Waiting for your comments and also if anyone needs further clarification do comment below, will update accordingly. ⤋😞