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TMI BlogPrescribed electronic modes of payment u/s 269SUX X X X Extracts X X X X X X X X Extracts X X X X ..... Prescribed electronic modes of payment u/s 269SU - By: - Mehul Kothari - Income Tax - Dated:- 13-2-2020 - - CBDT Notifies specific/ prescribed electronic modes of payment for Section 269SU: Background- The Finance (No. 2) Act, 2019 had introduced Section 269SU which required every person with a business turnover, sales or gross receipts exceeding INR. 50 crores to manda ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... torily provide facilities for accepting payments through prescribed electronic modes. The CBDT vide its Notification [No.105/2019/F. No. 370142/35/2019-TPL] dated 30th December 2019 has prescribed such electronic modes, which needs to be provided from 1 January 2020. Purpose- The introduction of section 269SU is part of the government s initiative for the promotion ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of digital payments and a cashless economy. The government is promoting low-cost digital modes of payment such as BHIM UPI, UPI-QR Code, RuPay, certain debit cards, NEFT, RTGS etc., to promote a cashless economy. The Reserve Bank of India and banks have to absorb the costs incurred towards these modes of payment. Prescribed Electronic Modes of Payment- It has been noted fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m the return of income furnished by you for the Assessment Year 2019-20 that your total sales/ turnover/ gross receipts during the financial year ending 31st March, 2019 exceeds INR. 50 crore has to mandatorily provide all the following modes for the purpose of acceptance of payment, which is in addition to the facility for other electronic modes of payment, if any, being provided by such person: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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). Note: On perusal of the above notification, it can be inferred that all the 3 alternatives as mentioned in (a), (b) (c) need to be provided for accepting payment through electronic modes. Appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cability of Other Charges on the prescribed electronic modes- Any payments made through the prescribed electronic modes would not be subject to transaction charge or any other charge including Merchant Discount Rate (MDR) on or after 1st January 2020. Further, a new provision namely Section 10A was also inserted in the Payment and Settlement Systems Act 2007, which provides that no B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ank or system provider shall impose any charge on a payer making payment, or a beneficiary receiving payment, through electronic modes prescribed under Section 269SU of the Income-tax Act 1961. Due Date for compliance- Every person required to provide the facilities for accepting payment through the aforesaid prescribed electronic modes on/before 31st January 2020. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Non Compliance- Every person who fails to offer the prescribed modes (installation operationalization of the facilities) by 31st January 2020 would be subjected to a penalty of INR. 5,000 per day of default with effect from 1st February, 2020 under Section 271DB . - - Scholarly articles for knowledge sharing authors experts professionals Tax Management India - taxmana ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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