Businesses to be fined Rs 5,000 a day for not using digital payments
Updated : December 31, 2019 11:12 AM IST
In a circular, CBDT said penalty under Section 271DB of the Finance Act shall not be levied if the specified person installs and operationalises the facilities on or before January 31, 2020.
In order to encourage digital economy and move towards a less-cash economy, a new provision was inserted in the Income Tax Act to require every person having a business turnover of more than Rs 50 crore to mandatorily provide facilities for accepting payments through prescribed electronic modes.
RuPay and UPI are among the prescribed mode of payment for digital transactions without any Merchant Discount Rate (MDR).