CBDT gives clarifications with respect to prescribed electronic modes under Section 269SU of Income Tax Act

Dec 31, 2019 | by Avantis RegTech Legal Research Team

Finance & Taxation Compliance

The Central Board of Direct Taxes (CBDT) on December 30, 2019, mandates every person having a turnover of more than Rs. 50 crore to provide facilities for accepting payments through prescribed electronic modes with effect from January 01, 2020 under Section 269SU of the Income-tax Act, 1961. The banks or system providers shall not impose any charge on a payer making payment, or a beneficiary receiving payment, through electronic modes prescribed under Section 269SU of the Income Tax Act, 1962. Therefore, any charge including the MDR (Merchant Discount Rate) shall not be applicable on or after January 01, 2020 on payment made through prescribed electronic modes.

All the businesses having turnover of more than Rs 50 Crore shall install and operationalise the facilities for accepting payment through the prescribed electronic modes on or before January 31, 2020. In case of failure, a penalty of rupees five thousand per day shall be levied from February 01, 2020.

[Circular No. 32/2019]


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