Section 269SU of The Income Tax Act

A new provision namely Section 269SU was inserted in the Income-tax Act 1961, vide the Finance (No. 2) Act 2019, which provides that every person having a business turnover of more than Rs. 50 Crore during the immediately preceding previous year shall mandatorily provide facilities for accepting payments through prescribed electronic modes.

The following electronic modes of payment for the purposes of Section 269SU have been prescribed by introducing rule 119AA under the Income-tax Rules:

i.          Debit Card powered by RuPay

ii.         Unified Payments Interface (UPI) (BHIM-UPI)

iii.        Unified Payments Interface Quick Response Code (UPI QR Code) (BHIM-UPI QR Code

Assessees has to register under BHIM – UPI  and BHIM – UPI QR Code at the earliest. Also, going forward they have to mention in all the invoices raised by them that the payment are accepted through all Debit cards including Debit card powered by RuPay, BHIM – UPI and UPI QR codes by stating the UPI ID and QR code in the invoice.

NOTE: Failure to provide the electronic modes for accepting payment shall invoke penalty of Rs.5,000 per day from February 01, 2020 under section 271DB of the Income Tax Act.