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, 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.
Therefore, with effect from 1st January, 2020, the specified person must provide the facilities for accepting payment through the prescribed electronic modes.
Such electronic modes are as below:
- Debit Card powered by RuPay;
- Unified Payments Interface (UPI) (BHIM-UPI); and
- Unified Payments Interface Quick Response Code (UPI QR Code) (BHIM-UPI QR Code).
Due Date for Compliance & Consequences of Failure to Comply
Every person required to comply with the provisions of Section 269SU must provide the facilities by 1st January 2020.
Every person who fails to offer the prescribed modes (installation & operationalization of the facilities) by 31st January 2020 would be subjected to a penalty of Rs. 5,000 per day of default with effect from 1st February, 2020.