Case law › Notifications › 2019 › Notification No. 105/2019 [F.No.370142/35/2019-TPL)] /GSR 960(E)

Notification 30 December 2019

Notification No. 105/2019 [F.No.370142/35/2019-TPL)] /GSR 960(E)

Ministry of Finance

What this is

Notification No. 105/2019 [F.No.370142/35/2019-TPL)] /GSR 960(E) was published on 30 December 2019. Its subject is Ministry of Finance.

This amends the Income-tax Rules. What it changes is the Rules, not the Act — and a rule can never take away what the section gives.

What it does

The Income-tax (16th Amendment) Rules, 2019, made under section 269SU read with section 295 of the Income-tax Act, 1961. After rule 119A a new rule 119AA is inserted, headed 'Modes of payment for the purpose of section 269SU'. It requires every person carrying on business whose total sales, turnover or gross receipts in business exceed fifty crore rupees during the immediately preceding previous year to provide a facility for accepting payment through Debit Card powered by RuPay, Unified Payments Interface (UPI) (BHIM-UPI), and Unified Payments Interface Quick Response Code (UPI QR Code) (BHIM-UPI QR Code), in addition to any other electronic modes of payment the person already provides.

Who it reaches

businesses with turnover above fifty crore rupees in the preceding previous year
their banks and payment service providers
customers paying such businesses
assessing officers checking compliance with section 269SU

The provisions it speaks to

Left, the provision of the Income-tax Act, 1961 as the instrument itself names it. Right, the section of the Income-tax Act, 2025 that the department’s own concordance maps it to — which is where the same ground is now covered.

Under the 1961 Act	Now
s.269SU	s.187
s.295	s.533

The instrument, as the Board published it

The department publishes this one only as a PDF, so the words below were read out of that PDF by machine. That reading can carry its own mistakes — a misread number, a broken line. Check the signed document before you rely on a figure in it.

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 30th December, 2019
G.S.R. 960(E).—In exercise of the powers conferred by section 269SU read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend Income-tax Rules, 1962, namely:—
1. Short title and commencement.—(1) These rules may be called the Income-tax (16th Amendment) Rules, 2019.
(2) They shall come into force from 1st day of January, 2020.
2. In the Income-tax Rules, 1962, after rule 119A, the following rule shall be inserted, namely:—
"119AA. Modes of payment for the purpose of section 269SU.- Every person, carrying on business, if his total sales, turnover or gross receipts, as the case may be, in business exceeds fifty crore rupees during the immediately preceding previous year shall provide facility for accepting payment through following electronic modes, in addition to the facility for other electronic modes of payment, if any, being provided by such person, namely:—
(i) Debit Card powered by RuPay;
(ii) Unified Payments Interface (UPI) (BHIM-UPI); and
(iii) Unified Payments Interface Quick Response Code (UPI QR Code) (BHIM-UPI QR Code).".
[Notification No.105/2019/F. No. 370142/35/2019-TPL]
ANKUR GOYAL, Under Secy.
Note : The principal rules were published in the Gazetted of India, Extraordinary, Part-II Section-3, Sub-section (ii) vide number S.O. 969(E) dated the 26th march, 1962 and were last amended by the Income-tax (15th Amendment) Rules, 2019 vide notification No. G.S.R. 937(E), dated the 18th December, 2019.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.

What it changes

The rule numbers are the 1962 Rules’ own, as the notification names them. The right-hand column is the department’s own mapping into the Income-tax Rules, 2026, which renumbered nearly everything.

Rule of the 1962 Rules	Now, in the 2026 Rules
Rule 119AA	rule 133

From when

1 January 2020.

What to watch

The rules come into force from 1 January 2020.
The fifty crore rupee threshold is tested on the total sales, turnover or gross receipts of the immediately preceding previous year, so the obligation can begin or fall away as turnover changes.
The three prescribed modes are in addition to, not in substitution for, any other electronic payment facility the business already offers.
The principal rules were last amended by the Income-tax (15th Amendment) Rules, 2019, G.S.R. 937(E), dated 18 December 2019.

Where you meet it

At the payment counter and payment gateway of a large business, and in any proceeding on the penalty for failure to provide the prescribed facility under section 269SU.

An example

Ours, not the Board’s: a worked case built from the rule the instrument sets, to show how it falls out.

A trader whose turnover in the immediately preceding previous year was sixty crore rupees must, from 1 January 2020, offer RuPay debit card acceptance, BHIM-UPI and the BHIM-UPI QR Code, even if it already accepts other cards and wallets.

What it names

Rules it names. Rule 119A of the Income-tax Rules, 1962. The 1962 Rules were replaced by the Income-tax Rules, 2026, which renumbered nearly everything: a rule number quoted here almost never means the same rule today.

On the same provision

Other instruments in this library that name the same provision of the 1961 Act. They are not necessarily still operative, and a later one may have replaced an earlier one without saying so.

Circular No. 12/2020 — Clarifications in respect of prescribed electronic modes under section 269SU of the income tax act 1961 20 May 2020
Circular No. 32/2019 — Clarifications in respect of prescribed electronic modes under section 269SU of the income tax act 1961 30 December 2019
Notification No. 54/2026 [F. No. 370142/15/2026-TPL] / G.S.R. 240(E) — Ministry of Finance 31 March 2026
Notification No. 52/2026 [F.No. 370142/13/2026-TPL] / G.S.R. 233(E) — (Central Board of Direct Taxes) 30 March 2026
Notification No. 141/2025 [F. No. 370142/30/2025-TPL] / G.S.R. 598(E) — Ministry of Finance 1 September 2025
Notification No. 136/2025 [F. No. 370142/29/2025-TPL] / G.S.R 566(E) — Ministry of Finance 21 August 2025

← Notification No. 109/2019 [F.No.187/8/2019-ITA-I] / SO 4722(E) · Notification No. 106/2019 [F.No.225/214/2019-ITA-II)] /SO 4709(E) →

What a notification is. A notification is made under a power the Act itself gives, and within that power it is law — unlike a circular, which only binds the department. Its reach is the reach of the enabling provision and no wider, and the date it carries decides from when it works.

Source: the Income Tax Department’s own published text — its page for this instrument.