Acceptance of payment through prescribed electronic modes - Section 269SU & Section 271DB - Income Tax - Ready Reckoner - Income Tax

Purpose of Inserting of section 269SU The declared policy objective of the Government to encourage digital economy and move towards a less-cash economy, a new provision namely Section 269SU was inserted in the Income-tax Act, 1961 ( the Act ), vide the Finance (No. 2) Act 2019 , After section 269ST of the Income-tax Act, the following section shall be inserted with effect from the 1st day of November, 2019. Acceptance of payment through prescribed electronic modes - Section 269SU Every person, carrying on business, shall provide facility for accepting payment through prescribed electronic modes, in addition to the facility for other electronic modes, of payment, if any, being provided by such person, if his total sales, turnover or gross receipts, as the case may be, in business exceeds ₹50 crore during the immediately preceding previous year. Exception of section 269SU [ Circular No. 12/2020 Dated 20.05.2020 ] The provisions of section 269SU of the Act shall not be applicable to a specified person having only B2B transactions (i.e. no transaction with retail customer/consumer) if at least 95% of aggregate of all amounts received during the previous year , including amount received for sales, turnover or gross receipts, are by any mode other than cash . Penalty for failure to comply with provisions of sections 269SU [ Section 271DB ] w.e.f. from 01 st February, 2020 If assessee fails to complied Section 269SU then he shall be liable to pay, by way of penalty, a sum of ₹5,000, for every day during which such failure continues. No such penalty shall be imposable if such person proves that there were good and sufficient reasons for such failure. Such Any penalty shall be imposed by the Joint Commissioner of Income-tax. As per Rule 119AA of Income Tax Rule, Prescribed Electronic Modes Debit Card powered by RuPay; Unified Payment Interface (UPI) (BHIM-UPI); and UPI Quick Response Code (UPI QR Code) (BHIM-UPI QR Code) Note :- Not to impose any charge on any transaction carried through prescribed electronic modes under section 269SU of the Income-tax Act, 1961. [ Circular No. 32/2019 Dated 30.12.2019 and Circular No. 16/2020 Dated 30.08.2020 ]