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Assessment & Procedure

Specified modes of payment

TL
ThinkLedger Editorial
1 min read

Introduction

Rule 48 prescribes the acceptable electronic modes to receive or pay a sum. These modes include credit card, debit card, net banking, BHIM, UPI, NEFT, etc.

1. Prescribed electronic modes

1.1. Relevant provisions

Following provisions of the Income-tax Act provides for receipt or payment through prescribed electronic modes:

Section Description
Schedule VIII Receipt of donation in excess of Rs. 2,000
Section 46 Capital expenditure in excess of Rs. 10,000
Section 36 Payment in excess of Rs. 10,000  or Rs. 35,000, as the case may be
Section 39 Payment in excess of Rs. 10,000 for purchase of a capital asset
Section 53 To consider the date of agreement for the purpose of computing full value of consideration
Section 58 [Table S. No. 1] Modes through which payment can be received for declaring presumptive income at the rate of 6%
Section 78 To consider the date of agreement for the purpose of computing full value of consideration
Section 92 To consider the date of agreement for the purpose of computing full value of consideration
Section 146 Payment of emoluments to employees
Section 185 Taking or accepting certain loans, deposits and specified sum of Rs. 20,000 or more.
Section 186 Receipts more than Rs. 2 lakhs
Section 188 Repayment of certain loans or deposits of Rs. 20,000 or more

1.2. Prescribed electronic modes

The CBDT has prescribed the following electronic modes through which payment or receipt can be made by the assessee:

(a) Credit Card;

(b) Debit Card;

(c) Net Banking;

(d) IMPS (Immediate Payment Service);

(e) UPI (Unified Payment Interface);

(f) RTGS (Real Time Gross Settlement);

(g) NEFT (National Electronic Funds Transfer), and

(h) BHIM (Bharat Interface for Money) Aadhaar Pay".

(i) Tier-III: Full FYC Central Bank Digital Currency wallets, P-CB-DC, Wholesale/Cross-border CBDC.

This article is general information and not tax advice. Provisions change. Confirm your position with a qualified professional before acting.

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