Need Tally
for Clients?

Contact Us! Here

  Tally Auditor

License (Renewal)
  Tally Gold

License Renewal

  Tally Silver

License Renewal
  Tally Silver

New Licence
  Tally Gold

New Licence
 
Open DEMAT Account with in 24 Hrs and start investing now!
« Top Headlines »
Open DEMAT Account in 24 hrs
 No more tax filing hassles with digital Form 16 Know how it works
 ITR Filing 2025: These individuals are exempt from paying tax. Do they need to file returns?
 Full List Of Trump's Reciprocal Tariffs Announced Wednesday
 Top 5 tax-saving investment options for salaried individuals to consider before March 31, 2025
 5 lesser lesser-known avenues of tax saving you can use to save income tax before March 31, 2025
 March 15 is deadline for last advance tax installment: Know if you must pay
  5 small savings options that save tax under Section 80C
 ITR filing 2025: How often can Indian taxpayers switch between new and old income tax regimes?
 Tax planning for 2025: How to maximise your savings before March 31 deadline
 New income tax bill reaches Parliament: Finance Minister Nirmala Sitharaman tables I-T Bill 2025 in Lok Sabha
 5 major changes in the last 6 months every taxpayer should know!

Clarifications in respect of prescribed electronic modes under section 269SU of the Income-tax Act, 1961
May, 21st 2020

F.No.370 142135/20 19-TPL
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
****


CircularNo. 7- /2020


Dated: May, 2020


Subject: Clarifications in respect of prescribed electronic modes under section 269SU of thcIncome-tax Act, 1961 - reg.


In furtherance to the declared policy objective of the Government to encourage digital transactionsand move towards a less-cash economy, a new provision namely Section 269SU was inserted in the [ncome-tax Act, 1961 ("the Act"), vide the Finance (No.2) Act 2019. This sectionrequi resevery person carrying on business and having sa les/turnover/gross receipts from business of more than Rs 50 Crores ("s pecified person") in the immed iately preceding previous yeartomandatorily provide facilities for accepting payments through prescribed electronic modes. Subsequently vide notification no. 105/2019 dated 30.12.2019 (i) Debit Card powered by RuPay;
(ii) Unified Payments Interface (UPI) (BH IM-U PI); and (iii) Unified Payments Interface Quick Response Code (UPI QR Code) (BHIM-UPI QR Code) were notified as prescribed electronic modes.


2. Representations have been received statingthat the above requirement of mandatory facility for payments through the prescribed electronic modes isgen erally applicablein B2C (Business to Consumer) businesscs, which directly deal with retail customers. Moreover, since the prescribed electronic modes have a maximum payment limit per transaction or pcr day they are not so relevant to B2B (Business to Business) businesses, which generally receive large payments through other electronic modes of payment such as NEFr or RTGS. Mandating such businesses to provide the facility for accepting payments through prescribed electronic modes would cause administrative inconvenience and impose additional costs.


3. In view of the above, it is hereby clarified that the provisions of section 269SU of the Act shall not be applicable to a specified person having on ly B2B transactions (i.e. no transaction with retail customer/consumer) if at least 95% of aggregate of all amounts received during the previous year, including amount received for sales, turnover or gross receipts, are bl mo other than cash.


&JJ..'
Under
Secretary to the Govt. of India
Copy to:
 1Al1Al


1. PS to FM/ OSD to FMI PS to MoS(F)/ OSD to MoS(F)
2. PPS to Secretary (Revenue)
3. Chairman, CBDT & All Members. CBDT
4. All PI'. DGsIT/ Pr. CslT
5. All 10int Secretari es! CslTI Directors! Deputy Secretaries/ Under Secretaries of CBDT
6. The C&AG of India
7. The JS & Legal Adviser, Ministry of Law & Justice, New Delhi
8. CIT (M&TP), Official Spokesperson ofCBDT
9. 0 /0 Pr. DGfT (Systems) for uploading on offic ia l website
10. leIT (Database Cell) for uploading on www.irsofficcrsonline.gov.in

Home | About Us | Terms and Conditions | Contact Us
Copyright 2025 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting