CBDT Notifies prescribed mode of payment for business with turnover more than 50cr

The Central Board of Direct Taxes on 30th December 2019 has issued the Income-tax (16th Amendment) Rules, 2019 which prescribes mode of payment for business with a turnover of more than 50 Crore.

Section 269SU of The Income Tax Act 1961 provides that every person having a business turnover of more than Rs. 50 Crores in the previous year shall mandatorily provide facilities for accepting payments through prescribed electronic modes.

Further a new Rule 119AA has been inserted to mandatorily provide for the following electronic modes of payments in addition to the facility for other electronic modes of payment, if any, being provided, namely-

  1. Debit Card powered by RuPay;
  2. Unified Payments Interface (UPI) (BHIM-UPI); and
  3. Unified Payments Interface Quick Response Code (UPI QR Code) (BHIM-UPI QR Code).

The amendment shall be effective from 1st January 2020.

Click here to read the Notification.