Comparison of Section 187 "Acceptance of payment through prescribed electronic modes." between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....hrough prescribed electronic modes where total sales, turnover or gross receipts exceed fifty crore rupees in the immediately preceding tax year. The requirement affects taxpayers (businesses/professionals) above the threshold and, indirectly, tax administration and payments infrastructure providers. Effective date or commencement is: Not stated in the document. Background & Scope Statutory hooks: The provision appears as Clause/Section 187 under the heading "MODE OF PAYMENT IN CERTAIN CASES, ETC." in the Income Tax Bill/Act, 2025. Context: the provision mandates acceptance of payments by certain electronic modes for persons carrying on business or profession crossing a monetary threshold. Coverage: persons carrying on business or profess....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....legislation/notifications. Interpretation Legislative intent and interpretive principles indicated by the text: The provision aims to expand and standardise electronic payment acceptance among larger businesses/professionals, likely to enhance traceability, digitisation of the economy and tax compliance. The use of "shall" denotes a mandatory obligation. The phrase "in addition to other electronic modes, if any, being provided by him" suggests that the prescribed modes are minimum required channels and do not supplant existing electronic payment facilities. The inclusion of "as may be prescribed" signals reliance on delegated legislation for specifying the exact electronic modes and perhaps technical or procedural standards. The text impl....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....y Interaction with Rules/Notifications/Circulars: The text expressly contemplates subordinate prescriptions ("as may be prescribed" / "as prescribed") for the electronic modes. Not stated in the document: which Rule-making power is being invoked, the particular authority tasked with prescription, or any existing Notifications/Circulars that supplement this provision. Therefore, the detailed modalities, definitions of prescribed modes, certification or compliance processes will depend on later rulemaking or administrative guidance. Not stated in the document: interaction with other provisions of the Income-tax Act relating to payment mechanisms, penalties, or information reporting obligations; any cross-reference to goods and services tax o....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Act text explicitly includes "profession" in the main sentence and clause (a). * Practical impact: the Act version more clearly extends the requirement to persons carrying on a profession as well as business; if the Bill version (Old Version) omitted "profession" in a clause that otherwise might have included it in the main sentence, it could create ambiguity whether professionals are covered. Given the two documents here, the Act clarifies inclusion of "profession". * Formality: Document 1 is labelled as Section 187 of the Act, and Document 2 as Clause 187 of the Bill - Old Version. * Practical impact: transition from Bill to Act may include minor drafting refinements; stakeholders should rely on the enacted Act text for legal obliga....