Explanation
Section 269SU was introduced by the Finance Act 2020 effective 1 January 2020 to promote digital payments in businesses. Any person carrying on business with total sales, turnover, or gross receipts exceeding ₹50 crore in the immediately preceding financial year must provide prescribed electronic payment modes to their customers. The prescribed modes include: UPI (Unified Payments Interface), NEFT (National Electronic Funds Transfer), RTGS (Real Time Gross Settlement), and debit/credit card payment facility through a POS or payment gateway. The penalty under §271DB is ₹5,000 per day for each day of non-compliance, and there is no cap on the total penalty — continued non-compliance compounds the liability significantly. Businesses cannot charge any extra fee or surcharge on customers who choose to pay via these modes — the CBDT has clarified this. The CBDT can notify additional prescribed modes. The threshold is based on preceding year turnover, so businesses that cross ₹50 crore in one year must set up the infrastructure before 1 April of the next year. Verify on the income-tax portal before filing.