Page 43 - Union Budget_2019
P. 43
Union Budget 2019
44AD Generation of turnover under presumptive taxation Only through account payee
for tax to be paid at 6% of turnover cheque, account payee draft or
electronic clearing system
through a bank account.
80JJAA Payment of emoluments where additional employee Other than through account
cost being nil for the purpose of computing deduction payee cheque, account payee
draft or electronic clearing
system through a bank
account.
The above sections are proposed to be amended so as to include such other electronic mode as may be
prescribed, in addition to the already existing permissible modes of payment.
These amendments will take effect from 1st April, 2020 and will, accordingly apply in relation to assessment
year 2020-2021 and subsequent assessment years.
Such other electronic mode may include swipe machine, online transfer, numerous payment gateways
like Paytm, BHIM UPI, Google Pay, etc.
The above-mentioned proposed amendment shall additionally be applicable for transaction within the
ambit of Sections269SS, 269T, 269ST which prohibits a person from accepting loans, receive payments, and
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repay loans, respectively, above the specified limits, with effect from 1 September, 2019.
10.2 Mandating acceptance of payments through prescribed electronic modes
It is proposed to insert new Section 269SU to provide that every person engaged in any business shall
provide facility of accepting payment through prescribed electronic modes, in addition to other electronic
modes of payment, if the total sales, turnover or gross receipts in business exceeds Rs. 50 crores in
immediately preceding previous year.
In case of violation of the above section, penalty of Rs. 5,000 per day shall be charged by Joint
Commissioner until such failure continues, vide new Section 271DB. The said penalty shall not be levied if
it is proved that there were genuine reasons for such failure.
A consequential amendment is proposed to be made in Payment and Settlement Systems Act, 2007 to
provide that there shall not be any charges levied by bank or system provider for using the modes
prescribed under Section 269SU.
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These amendments shall be applicable from 1 November, 2019.
The proposed amendment shall promote the Government's vision of expanding digital economy.
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