NEW DELHI: The Income Tax department on Sunday asked banks to refund the charges collected on or after January 1, 2020, on transactions carried out through electronic modes like RuPay cards or BHIM-UPI.
The Central Board of Direct Taxes (CBDT), in a circular on ‘imposition of charge on the prescribed electronic modes under section 269SU of I-T Act’, also advised banks not to impose any charges on any future transactions carried out through these modes.
To encourage digital transactions and move towards a less-cash economy, the Government inserted a new provision, Section 269SU, in the Finance Act, 2019.
The Act requires a person carrying on business and having sales/turnover/gross receipts from business of more than Rs 50 crore in the immediately preceding previous year to mandatorily provide facilities for accepting payments through prescribed electronic modes. (AGENCIES)
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