Clarifications in respect of prescribed electronic modes under section 269SU of the Income-tax Act, 1961


 Notice Date : 30 December 2019

F.No.370 142135/2019-TPL

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

Dated: 30'h December, 2019

Sub.: Clarifications in respect of prescribed electronic modes under section 269SU of the Income-tax Act, 1961 - reg.

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 ( o. 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. The said electronic modes have been prescribed vide notification no. 105/2019 dated 30.12.2019 ("prescribed electronic modes"). Therefore, with effect from 0 I" January, 2020, the specified person must provide the facilities for accepting payment through the prescribed electronic modes. Further, Section lOA of the Payment and Settlement Systems Act 2007, inserted by the Finance Act, provides that no Bank 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 Act. Consequently, any charge including the MDR (Merchant Discount Rate) shall not be applicable on or after 01 " January, 2020 on payment made through prescribed electronic modes.

To know more in details,click here

 





×
close
GST Live Class
Get Income Tax App    |    x