The Finance (No. 2) Act, 2019 has inserted a new section 269SU in the Income-tax Act, 1961 to encourage digital transactions and move towards cashless economy.
Section 269SU:
Every person, carrying on business, shall provide facility for accepting payment through prescribed electronic modes, in addition to the facility for other electronic 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.
Applicability
Above Section come into force from 1st day of January, 2020
Now Notification No.105/2019/F. No. 370142/35/2019-TPL Dated 30.12.2019 has been issued for prescribing electronic modes.
For this purpose, New Rule 119AA has been inserted for prescribing mode of payment for the purpose of Section 269SU.
Rule 119AA. Modes of payment for the purpose of section 269SU
Every person, carrying on business, 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 shall provide facility for accepting payment through following electronic modes, in addition to the facility for other electronic modes of payment, if any, being provided by such person, namely:—
(i) Debit Card powered by RuPay;
(ii) Unified Payments Interface (UPI) (BHIM-UPI); and
(iii) Unified Payments Interface Quick Response Code (UPI QR Code) (BHIM-UPI QR Code).”.