Circular 32/2019 and Notification 105/2019 - Provision of Section 269SU and Penalty @5000/- per day under Section 271DB of Income Tax Act 1961

This is to inform you that CBDT vide Notification 105/2019 and Circular 32/2019 dated 30.12.2019 has prescribed three electronic modes for accepting payments by person having total sales, turnover, total gross receipts of more than Rs. 50 Crore. Any person having a business turnover of more than Rs 50 Crore shall mandatorily provide facilities for accepting payments through the following prescribed electronic modes:
  1. Debit Card powered by Rupay
  2. Unified Payments Interface (UPI) – BHIM-UPI
  3. UPI QR Code

Therefore, with effect from 1st January, 2020, the specified person must provide the facility for accepting payment through the above mentioned prescribed electronic modes.

However, if the specified person fails to do so, he shall be liable to pay a penalty of five thousand rupees per day from  1st February, 2020 under section 271 DB of the Act for such failure. Attached is the circular for your reference.

Thanks and Regards

CSC Team