What is Section 269SU ?

Section 269 SU of Income Tax Act 1961 has prescribed to provide electronic mode of payment facility to the customers. In addition to the other existing electronic facilities that may already been provided by the business entities, they now mandatorily need to provide electronic payment services as well. It should be noted that this provision is applicable on people carrying out business.

Who is applicable for Section 269SU?

Section 269SU has prescribed an every person who has a business with an annual turnover or total sale of ? 50 crores or more during the immediately preceding the previous year. According to rule 119 AA , the provision will be applicable to the following assessees also :

  • An assessee who is engaged in a B2B model.
  • A 100% export-oriented assessee.
  • A foreign company doing business with a permanent establishment in India.

What is the applicability date of Section 269SU?

Section 269SU will be applicable from 1st January 2020.

Which electronic modes of payment are prescribed under Section 269SU?

Following are the prescribed mode of payment under Section 269SU:
a.) Debit card powered by Rupay
b.) Unified Payment Interface (UPI) (BHIM UPI)
c.) Unified Payment Interface Quick Response Code (UPI QR code) (BHIM UPI QR code).

  • Login into the e-filing portal of the Income Tax Department, a POP up as shown in the screen will be displayed. Section 269SU
  • Click on the ‘Continue’ tab.
  • Choose the mode of payment and click on the ‘Submit’ button. Section 269SU mode of payment

If not complied under section 269SU, what could be the penal provisions?

Non-Compliance of section 269SU is covered by section 271DB, if the provision is not fulfilled with effect from 1st February 2020 , a penalty of ? 5,000 per day will be levied.


CA Abhishek Soni
CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.