CBDT notifies other electronic modes for acceptance of payment for businesses.

The Ministry of Finance vide notification dated 29th January, 2020, has published the Income-tax (3rd Amendment) Rules, 2020 which prescribes the ‘other electronic modes’ for the purpose of accepting and making electronic payment under different sections of the Income-tax Act, 1961 such as section 35AD, section 40A, Section 43, section 43CA, section 44AD, 50C, section 56, section 80JJAA, section 269SS, section 269ST and section 269T.

Through this amended New rule Rule 6ABBA specifies “Other electronic modes” as under:

a) Credit Card; 

b) Debit Card; 

c) Net Banking; 

d) IMPS (Immediate Payment Service); 

e) UPI (Unified Payment Interface); 

f) RTGS (Real Time Gross Settlement); 

g) NEFT (National Electronic Funds Transfer), and 

h) BHIM (Bharat Interface for Money) Aadhar Pay

The above Rule shall be deemed to have been inserted from September 01, 2019.

Further the marginal heading in Rule 6DD of Income Tax Rules, 1962 has been substituted to “Cases and circumstances in which a payment or aggregate of payments exceeding Rs 10,000 may be made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft or use of electronic clearing system through
a bank account or through such other electronic mode as prescribed in rule 6ABBA.”

Click here to read the Notification