FTS- 1275045/2019
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes

New Delhi, dated 18^th October 2019

NOTICE

Prescribing of certain electronic modes of payment under Section 269SU of the Income-tax Act, 1961-Invitation for application

1. 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, vide the Finance (No. 2) Act 2019, which provides that every person having a business turnover of more than Rs 50 Crore shall mandatorily provide facilities for accepting payments through prescribed electronic modes.
2. Further, a new provision namely Section 10A was also 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 payment, or a beneficiary receiving payment, through electronic modes prescribed under Section 269SU of the Income-tax Act 1961.
3. These provisions shall come into force with effect from 1^stNovember, 2019. The Central Government proposes to prescribe certain electronic modes of payment for the purposes of Section 269SU.
4. Accordingly, applications are hereby invited from the Banks and Payment System Providers, operating an authorised 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 under Section 269SU of the Income-tax Act 1961.
5. The application shall be made in the format given below and shall be duly signed by the authorised signatory.

The expression of intent may be sent by e-mail at dirtp14@nic.in by 28^th October 2019. Any query or clarification in this regard may be made at 011-2309 2964.

Ankur Goyal

Under Secretary (TPL-IV)

What if section 269SU is not complied with?

There is a penalty u/s 271DB for non-compliance with the provisions of section 269SU, as under:

 “271DB.(1) If a person who is required to provide facility for accepting payment through the prescribed electronic modes of payment referred to in section 269SU, fails to provide such facility, he shall be liable to pay, by way of penalty, a sum of five thousand rupees, for every day during which such failure continues:

Provided that no such penalty shall be imposable if such person proves that there were good and sufficient reasons for such failure.

(2) Any penalty imposable under sub-section (1) shall be imposed by the Joint Commissioner of Income Tax.”