Clarification regarding Section 269SU Income Tax Act 1961
There is some announcement done by the government regarding a policy, through this declaration government has only one motive that is to encourage the public for the digital transaction, on the other hand, we can say that for the government wants to promote cash-less economy, A new provision namely section 269SU was inserted in the Income-tax Act,1961 vide the Finance(No.2) Act 2019. This section introduces only because this section had one requirement which is each person who carrying a business they should have sales/gross receipts /turnover Rs.50 Crore or more from the business in the immediately proceeding previous year and the proceeding of accepting payment receipt must be in the electronic mode Subsequently vide notification no.105/2019 dated 30.12.2019
(i) Debit Card powered by RuPay
(ii) Unified Payment Interface (UPI) (BHIM-UPI)
(iii) Unified Payment Interface Quick Response Code (UPI QR Code) (BHIM-UPI QR Code) were notified as prescribed electronic modes.
2. Any other requirement which is mandatory facility for payment is done by the electronic mode and this is generally applicable in B2C (Business to Consumer)business, they are dealing with a retail consumer directly. There is some limited payment transaction limit per transaction and per day when you are doing Payment through electronic mode but they are relevant to B2B (Bussiness to Bussiness)business. Because in B2B they always receive a larger amount of payment such as NEFT or RTGS. In B2B business they provide a facility to do a payment through electronic mode would cause administrative inconvenience and impose an additional cost.
3. As now we all are aware that section 269sU of the Act shall not apply to the person who having B2B transaction only, in the previous year 95% payment transaction is received by the electronic mode, there is include received for sales, turnover or gross receipts.