E-Modes of Payments | Section 269SU Read with rule 119AA

Inserted by Finance Act 2019:

269SU. Every person, carrying on business, if his total sales, turnover or gross receipts, in business exceeds fifty Crore rupees during the immediately preceding previous year 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.

New Rule: 119AA Modes of payment for section 269SU:

Effective from 1st day of January, 2020

Every person carrying on business:

If he is total sales / Turnover or gross receipts in the business exceed 50CR in the previous financial year (Specified Person) shall provide facility for accepting payment through following electronic modes:

(i) Debit Card powered by RuPay;

(ii) Unified Payments Interface (UPI) (BHIM-UPI); and

(iii) Unified Payments Interface Quick Response Code (UPI QR Code) (BHIM-UPI QR Code)”

• No Bank / System provider shall impose any charges on payer / Receiver making or receiving payments through electronic modes prescribed U/s 269SU of the act.
• Even Merchant discount rate (MDR) shall not be applicable on or after 01.01.2020.

Penalty for Violation of Section 269SU Provisions under Section Section 271DB

 This Section provides for levy of penalty of 5000/ per day in case of failure by the specified person to comply with the provisions of S/269SU.

Section 271DB of the Act shall not be levied if the specified person installs and operationalises the facilities on or before 31^st January, 2020.

Reference:

https://taxguru.in/income-tax/rule-119aa-modes-payment-purpose-section-269su.html

https://taxguru.in/income-tax/clarifications-prescribed-electronic-modes-section-269su.html