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All you need to know about the new Section 269SU of the Income Tax Act

Section 269SU has been introduced by the government under Income Tax Act with an intention to promote cashless economy and digital mode of accepting payment. Section 269SU prescribes for accepting payment through certain electronic modes as prescribed in addition to other electronic modes.

Applicability of Section 269SU

Applies to every person  carrying on business and whose turnover of the business exceeds ₹ 50 crore during the immediately preceding previous year

Effective Date of Enforcement Provisions 

This section came in to effect from 01-11-2019, however the prescribed modes were notified on 30th December, 2019 which are applicable from 1st Jan, 2020. As per circular dt. 30th Dec, 2019 time given to equip yourself is 31-01-2020.

Implication & Modes of Payment under Section 269SU

Such business has to provide all facilities mentioned below for accepting payment through following electronic modes, in addition to the facility for other electronic modes of payments.

Such modes of payments are notified vide notification no. 105/2019 of CBDT dated December 30, 2019 are as follows:

Consequence of Non Compliance Of Section 269SU

Penalty of ₹ 5,000/- per day and will be effective from 01-02-2020 under section 271DB for failure to comply with provisions of section 269SU.

With the 31st January deadline looming, the best way for businesses to fulfill the notification would be by integrating with a payment platform like Dzire Money.

A payment gateway is a system that is designed to handle end-to-end payments. A payment gateway, when integrated with a business’s website or app, allows the business to accept domestic as well as international payments through all electronic modes. The best part about Dzire Money is the ease of integration. This includes net banking, credit cards, debit cards and the notification’s requirements of UPI and RuPay. 


1.  For Debit Card powered by RuPay contact your existing bank.

2.   For BHIM-UPI payment.

3.  For BHIM-QR Code

ProEx can help you integrate to comply with all the above and much more, in a highly cost-effective and easy to use manner. Our Professionally personal care by experienced experts will help your business take over to the next level of digital. 

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