The Central Board of Direct Taxes (CBTD) on 18th October 2019, has invited applications from the Banks and Payment system for being prescribed as an eligible electronic payment mode under Section 269SU of the Income-tax Act, 1961.
The decision is based on the government’s decision to promote digital payments and less-cash economy articulated in the budget presented by finance minister Nirmala Sitharaman.
According to the newly inserted provision Section 269SU of the Income Tax Act, which provides that every person having a business turnover of more than Rs 50 Crore is mandated to provide facilities for accepting payments through prescribed electronic modes. The new provision will come into effect from November 01, 2019.
Further, a new provision namely Section 10A was inserted in the Payment and Settlement Systems Act 2007, which provides that no Bank or system provider shall impose any charge on a payer making the payment, or a beneficiary receiving payment, through electronic modes prescribed under Section 269SU of the Income-tax Act 1961.
The government proposes to prescribe certain electronic modes of payment for the purpose. Therefore, CBDT invites application from the Banks and Payment System Providers, operating an authorized payment system under the Payment and Settlement Systems Act 2007, who are willing that their payment system may be taken into consideration for being prescribed as an eligible electronic payment mode, by October 28, 2019 by e-mail at dirtp14@nic.in, in format prescribed in the Notice.
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