All about the new section 269SU of the Income Tax Act, 1961. (Inserted by Finance act 23 of 2019, w.e.f.1-11-2019)
Finance Act 2019 inserted new Section 269SU after section 269ST of the Income-tax Act, with effect from
the 1st day of November, 2019, —
the 1st day of November, 2019, —
Acceptance
of payment through prescribedelectronic modes:
of payment through prescribed
Every
person, carrying on business, shall provide facility for accepting payment through prescribed electronic modes,
in addition to the facility for otherelectronic 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
fifty crore rupees during the immediately preceding previous
year.”
person, carrying on business, shall provide facility for accepting payment through prescribed electronic modes,
in addition to the facility for other
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
fifty crore rupees during the immediately preceding previous
year.”
Summary of the section along with notification and clarification w.r.t. the Section 269SU is given in the form of FAQs for better understanding of this new section.
Who is required to provide electronic modes
for accepting payments?
Every person carrying business and having turnover
exceeding 50 Crore rupees during the immediately
preceding previous year.
exceeding 50 Crore rupees during the immediately
preceding previous year.
What are the prescribed modes for accepting payment?
CBDT wide Notification No. 105/2019 dated 30/12/2019
prescribed following modes w.e.f from 1st day of January, 2020. (Rule 119AA)
prescribed following modes w.e.f from 1st day of January, 2020. (Rule 119AA)
- 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)
Is it compulsory to provide above payment
modes?
modes?
Yes, every business with turnover exceeding 50
Crore in a preceding previous year must provide above mentioned payment modes.
Crore in a preceding previous year must provide above mentioned payment modes.
What if, business already have NEFT, RTGS
facility?
Above mentioned e-payment modes are additional
facility along with existing facility. Irrespective of existing facility business
must maintain prescribed modes for accepting payment.
facility along with existing facility. Irrespective of existing facility business
must maintain prescribed modes for accepting payment.
Is there any penalty, if business does not
maintained prescribed modes of payment?
Yes, Section 271DB has been inserted w.e.f
01/11/2019, which has penalty clause as follows:
01/11/2019, which has penalty clause as follows:
(1) If a person who is required to provide facility
for accepting payment through the prescribed electronic modes of payment
referred to in section269SU ,
fails to provide such facility, he shall be liable to pay, by way of penalty, a
sum of five thousand rupees, for every day
during which such failure continues:
for accepting payment through the prescribed electronic modes of payment
referred to in section
fails to provide such facility, he shall be liable to pay, by way of penalty, a
sum of five thousand rupees, for every day
during which such failure continues:
Provided that
no such penalty shall be imposable if such person proves that there were good
and sufficient reasons for such failure.
no such penalty shall be imposable if such person proves that there were good
and sufficient reasons for such failure.
(2) Any penalty
imposable under sub-section (1) shall be imposed by the Joint Commissioner of
Income-tax.
imposable under sub-section (1) shall be imposed by the Joint Commissioner of
Income-tax.
From which date penalty under section 271DB will be levied?
As
per clarification issued by CBDT dated 30th December,2019 penalty
will not be levied if prescribed class of person install and operationalise such
facility on or before 31st January, 2020.
However, if
the specified person fails to do so, he shall be liable to pay a penalty of
five thousand rupees per day from 01 February 2020.
the specified person fails to do so, he shall be liable to pay a penalty of
five thousand rupees per day from 01 February 2020.
What are the bank charges for using prescribed
payment modes?
As per newly inserted section 10A of Payment and Settlement Systems Act,
2007 bank will not impose any charges for using the electronic modes of
payment prescribed under section 269SU of the Income-tax Act, 1961
2007 bank will not impose any charges for using the electronic modes of
payment prescribed under section 269SU of the Income-tax Act, 1961
#Source:
https://www.incometaxindia.gov.in/news/notification_105_2019.pdf
https://www.incometaxindia.gov.in/news/circular_32_2019.pdf