Central Board of Direct Taxes (CBDT) has issued Notification No.105/2019 dated 30th December, 2019 to notify the modes of payment for the purpose of Section 269SU of Income Tax Act, 1961.
A new Rule 119 AA has been inserted with effect from 1st day of January, 2020 prescribing the mode of payment for the purpose of Section 269SU where 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)
Also, it has been clarified vide Circular 32/2019 dated 30th December, 2019 that the penalty as per Section 271 DB of the Income tax Act,1961 shall not be levied if the specified person installs and operationalises the facilities on or before 31″ January, 2020. However, if the specified person fails to do so, he shall be liable to pay a penalty of five thousand rupees per day from 01st day of February, 2020 under section 271 DB for such failure.
* 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.
** Section 271DB- If a person who is required to provide facility for accepting payment through the prescribed electronic modes of payment referred to in section 269SU, fails to provide such facility, he shall be liable to pay, by way of penalty, a sum of five thousand rupees, for every day during which such failure continues:
Provided that no such penalty shall be imposable if such person proves that there were good and sufficient reasons for such failure.
Source: Income Tax Department
