Section 187 is the substantive equivalent of 1961 s. 269 SU -- introduced FA 2019 mandating businesses with TURNOVER > INR 50 CRORE in preceding financial year to provide facility for accepting payments through electronic mode (UPI /…
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ITA 2025 · Section 187
Section 187 — - MANDATORY ELECTRONIC PAYMENT FACILITY
Section 187 is the substantive equivalent of 1961 s. 269SU -- introduced FA 2019 mandating businesses with TURNOVER > INR 50 CRORE in preceding financial year to provide facility for accepting payments through electronic mode (UPI / RuPay / cards / IMPS / NEFT / RTGS / BHIM-UPI). The provision was followed by CBDT Notification (Dec 2019) prescribing minimum mode = BHIM-UPI / UPI-QR / RuPay debit card. Penalty (s. 271DB equivalent): INR 5,000 per day of default. The provision aligned with Digital India objectives and reduced cash transaction footprint.
STATUTORY ARCHITECTURE
ELIGIBLE PERSON: business with TOTAL SALES / TURNOVER / GROSS RECEIPTS in business EXCEEDING INR 50 CRORE in immediately preceding tax year. OBLIGATION: provide facility for accepting payment through PRESCRIBED ELECTRONIC MODES. PRESCRIBED MODES (CBDT Notification): (a) BHIM-UPI; (b) UPI-QR Code; (c) RuPay Debit Card; (d) Visa / Mastercard cards; (e) NEFT / RTGS / IMPS. Required to provide facility -- not necessarily to use. Customer can still pay cash if business / customer prefers, but the digital option must be available. PENALTY (s. 271DB / equivalent): INR 5,000 per day until compliance / electronic facility established. Practitioner: businesses crossing INR 50 cr threshold must verify electronic-mode availability before s. 263 due date; merchant POS / UPI-QR / payment-gateway integration.
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