Quick Summary
In furtherance to 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 (the Finance Act), which provides that every person having a business turnover of more than Rs 50 Crore (specified person) shall mandatorily provide facilities for accepting payments through prescribed electronic modes.Read the following notifi
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FAQ :
Section 269SU mandates that any person with a business turnover exceeding Rs 50 crore must provide facilities for accepting payments through prescribed electronic modes.
The prescribed electronic modes are 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).
These rules came into effect from 1st January 2020.
No, banks or system providers cannot impose any charges on payers or beneficiaries for payments made through the electronic modes prescribed under Section 269SU, including Merchant Discount Rate (MDR).
Failure to comply with Section 269SU can result in a penalty of five thousand rupees per day.
Yes, the penalty under Section 271DB will not be levied if the specified person installs and operationalises the facilities by 31st January 2020. Otherwise, the penalty applies from 1st February 2020.
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