CBDT Exempts B2B Businesses From Mandatory Digital Payment Facility

What is Section 269SU?

The Section 269SU was inserted in the Income Tax Act, 1961, vide the Finance (No.2) Act 2019. This section requires every person carrying on business and having sales/turnover/gross receipts from business of more than Rs 50 Crores (“specified person”) in the immediate preceding year to provide mandatory facilities for accepting payments through prescribed electronic modes.

Subsequently vide notification no. 105/2019 dated 30.12.2019 prescribed electronic modes were announced.

  • Debit Card powered by RuPay
  • Unified Payments Interface (UPI) (BHIM-UPI)
  • Unified Payments Interface Quick Response Code (UPI QR Code) (BHIM-UPI QR Code).


Reason for change

Due to representations received from business stating administrative inconvenience on account of limit prescribed under electronic mode. CBDT has clarified¬† that section 269SU shalln’t be applicable to a specified person having only B2B transactions i.e no transactions with retail customer/consumer if at least 95% of aggregate of all amounts received during the previous year, including amount received for sales, turnover or gross receipts, or by any mode other than cash


The circular by CBDT is attached below:

[gview file=”https://www.incometaxindia.gov.in/communications/circular/circular_no_12_2020.pdf”]

Source: Income Tax India