Section 269SU – Other electronic modes for accepting payments

CBDT has now prescribed other e-modes of accepting payment under Section 269SU. The Indian government, last year had introduced Section 269SU under the ITA which provides that every person carrying on business and having total sales/ turnover/ gross receipts exceeding INR 50 Crore in the immediate preceding year is required to provide facility for accepting payments through certain prescribed electronic modes in addition to any other facility of electronic mode being provided by it/ him/ her. The intention is to promote a cashless economy and digital mode of accepting payments. Now, the CBDT  vide a Notification  has prescribed the following modes of payment which are required to be maintained with effect from 1st Jan 2020 (in addition to the facilities for accepting e-payments already being provided):

• Debit Card powered by RuPay;
• Unified Payments Interface (UPI) (BHIM-UPI); and
• Unified Payments Interface Quick Response Code (UPI QR Code) (BHIM-UPI QR Code)’

  CBDT has also clarified that penalty u/s 271DB of ITA to be levied @ INR 5,000 per day for failure to comply with these provisions shall not be levied if the above payment facilities are installed and become operational on or before 31st Jan 2020. In case of failure, the person shall be liable to pay a penalty of INR 5,000 per day from 1st Feb 2020 onwards. Accordingly, it is advisable to have these facilities installed at the earliest possible. Further w.e.f. 1st Jan 2020, any charge including Merchant Discount Rate shall not be applicable on payer or beneficiary, regarding payment through these prescribed electronic modes.   For the text of the Circular, you may refer to the link below: https://www.incometaxindia.gov.in/communications/circular/circular_32_2019.pdf For the text of the Notification, you may refer to the link below: https://www.incometaxindia.gov.in/communications/notification/notification_105_2019.pdf   For more information contact us.