The Central Board of Direct Taxes ( CBDT ) to levy a penalty for not providing facility to accept digital payments from February 1st, 2020.
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 of the Income Tax Act was inserted 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.
The said electronic modes have been prescribed vide notification no. 105/2019 dated 30.12.2019.
Therefore, with effect from 1st January 2020, the specified person must provide the facilities for accepting digital payments through the prescribed electronic modes. Further, Section 10A of the Payment and Settlement Systems Act 2007, inserted by the Finance Act, 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.
Consequently, any charge including the MDR (Merchant Discount Rate) shall not be applicable on or after 01 ” January 2020 on payment made through prescribed electronic modes.
3,193 total views, 6 views today