The Central Board of Direct Taxes ( CBDT ) has invited applications for Prescribing of certain electronic modes of payment under Section 269SU of the Income Tax Act, 1961.
According to the newly inserted provision Section 269SU of the Income Tax Act, the objective of the Government to encourage digital economy and move towards a less-cash economy, 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.
Further, a new provision namely Section 10A of the Income Tax Act 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 the payment, or a beneficiary receiving payment, through electronic modes prescribed under Section 269SU of the Income-tax Act 1961.
The provisions shall come into force with effect from 1st November, 2019.
The applications are 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.
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