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

Last updated: 08 January 2020

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The Income-tax Act, 1961, now includes Section 269SU, requiring businesses with a turnover exceeding Rs 50 Crore to accept payments via prescribed electronic modes. This rule, effective from 1st January 2020, aims to boost the digital economy. Importantly, no charges, including Merchant Discount Rate (MDR), can be levied on payments made through these mandated electronic methods.

F.No.370 142135/2019-TPL Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes Dated: 30h December, 2019 Sub.: Clarifications in respect of prescribed electronic modes under section 269SU of the Income-tax Act, 1961 - reg. In furtheran

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FAQ :

Section 269SU requires every person with a business turnover exceeding Rs 50 Crore to provide facilities for accepting payments through prescribed electronic modes.

The requirement to provide facilities for accepting payments through prescribed electronic modes came into effect from 1st January 2020.

The prescribed electronic modes have been notified by the government via notification no. 105/2019 dated 30.12.2019.

No, banks or system providers cannot impose any charge on payers or beneficiaries for payments made through the prescribed electronic modes under Section 269SU.

No, any charge, including the Merchant Discount Rate (MDR), is not applicable on payments made through the prescribed electronic modes from 1st January 2020 onwards.