Electronic payment mandatory for businesses over 50 crore: CBDT

- Advertisement -
  • The new provisions will come into effect from November 1, 2019
  • Section 10A has been added to the Payment and Settlement Systems Act. It prohibits banks and payment system providers from imposing any charge on transactions through electronic modes of payments
  • A new provision, namely Section 269SU, has been inserted in the Income-tax Act

According to the Central Board of Direct Taxes, the government has asked businesses with turnover exceeding 50 crores to mandatorily provide electronic modes of payment. Also, a new provision, namely Section 269SU, has been inserted in the Income-tax Act. The new provisions will come into effect from November 1, 2019.

A new provision

- Advertisement -

The CBDT further added that another provision, Section 10A, has been added to the Payment and Settlement Systems Act. This provision prohibits banks and payment system providers from imposing any charge on transactions through electronic modes of payments specified in Section 269SU of the Income-tax Act.

To promote digital payments

The step is in accordance with the government’s decision to promote digital payments. Earlier this year, Finance Minister Nirmala Sitharaman said that there are low-cost digital modes of payment such as BHIM UPI, UPI-QR Code, Aadhaar Pay, NEFT and RTGS, which can be used to promote the less-cash economy.

She further stated that the business establishments with annual turnover more than Rs 50 crore shall offer such low-cost digital modes of payment to their customers and no charges or Merchant Discount Rate shall be imposed on customers as well as merchants.

- Advertisement -

Related Artcles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Buzz

Drone

First Drone School Destination in NE: Guwahati

0
In the pursuance of the ‘Act East’ policy and the aim to make India a drone tech hub, northeast India has got its first...

8 EMC Projects Completed

0
The Electronics Manufacturing Cluster is leaving no stone unturned for setting up operational units around the country. Out of the 3464.42 acres, 1342 acres...

Kentucky Company Rubicon Tech Now on NYSE

0
The Kentucky-based leading tech company, Rubicon Technologies, Inc. (Rubicon), has announced trading on the New York Stock Exchange (NYSE) beginning Tuesday. The step followed...

Exclusive

Sterlite Tech’s Losses down QoQ, Revenue Up YoY

0
Sterlite Technologies recently published its financial performance results for Q1, FY 23. While it witnessed a 20.32% increase in the overall revenue on a...

8 EMC Projects Completed

0
The Electronics Manufacturing Cluster is leaving no stone unturned for setting up operational units around the country. Out of the 3464.42 acres, 1342 acres...

Kentucky Company Rubicon Tech Now on NYSE

0
The Kentucky-based leading tech company, Rubicon Technologies, Inc. (Rubicon), has announced trading on the New York Stock Exchange (NYSE) beginning Tuesday. The step followed...

Important Sectors

Sterlite Tech’s Losses down QoQ, Revenue Up YoY

0
Sterlite Technologies recently published its financial performance results for Q1, FY 23. While it witnessed a 20.32% increase in the overall revenue on a...
Drone

First Drone School Destination in NE: Guwahati

0
In the pursuance of the ‘Act East’ policy and the aim to make India a drone tech hub, northeast India has got its first...

I-Day Gift: Ola Electric Car in 2024!

0
Ola Electric, at an event on Monday, announced the launch of their first electric car by 2024. Though not much has been revealed about...

Indian Chip Industry to Cross $300 billion by 2026

0
As India gradually strides toward becoming Aatmanirbhar, a new report on the chip component industry avouch for this growth. The report of India Electronics...
EV

Volkswagen Testing ŠKODA EVs in India

0
German auto giant Volkswagen has begun to test some ŠKODA EVs in India. As per a senior official of the company, the step aims...

Manufacturing

I-Day Gift: Ola Electric Car in 2024!

0
Ola Electric, at an event on Monday, announced the launch of their first electric car by 2024. Though not much has been revealed about...

Indian Chip Industry to Cross $300 billion by 2026

0
As India gradually strides toward becoming Aatmanirbhar, a new report on the chip component industry avouch for this growth. The report of India Electronics...
EV

Volkswagen Testing ŠKODA EVs in India

0
German auto giant Volkswagen has begun to test some ŠKODA EVs in India. As per a senior official of the company, the step aims...

Mahindra To Launch Unveiled e-SUVs in 2024

0
On Monday, Indian auto-giant Mahindra & Mahindra (M&M) unveiled its five new electric sports utility vehicles (e-SUVs) --- XUV.e8, XUV.e9, BE.05, BE.07 and BE.09,...

US Aiming to Regain its Semiconductor Leadership

0
Semiconductors are now finding a rightful place in all areas such as national security, information technology, aerospace, and so forth. What is sad is...