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News INCOME TAX

  • May 21, 2020
  • CBDT gives wholesalers relief on electronic payment norms

    The Central Board of Direct Taxes (CBDT) has pruned the list of electronic payments methods wholesalers can offer, in a bid to make payment options more relevant to a business’ customer base.

    CBDT said in a circular that wholesalers need not offer certain electronic payment methods, such as debit cards powered by RuPay, unified payments interface (UPI) and UPI quick response code, which are generally used by retail customers. They were made compulsory for businesses in 2019 with the aim of promoting a less-cash economy.

    The move to exempt wholesalers from compulsorily offering these payment options is based on industry suggestions that these modes are more suitable for retail transactions and usually have a maximum payment limit per transaction, or per day, which do not apply to wholesalers, who receive payments through other electronic modes such as real-time gross settlement.