Rule 48: Recognised electronic payment modes
Rule 48 identifies additional electronic payment modes for the particular Act provisions listed in its opening words. The list includes familiar bank-payment methods and specifically described Central Bank Digital Currency categories.
Official notified Income-tax Rules, 2026Need advice on Rule 48?
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Rule 48 - Other electronic modes of payment
For the purposes of Schedule VIII [Table: Sl.No. 1. D(d)], section 66(32), section 146(5)(a)(ii)(B), sections 185, 186 and 188, the other electronic modes of payment shall be the following:— (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); (h) BHIM (Bharat Interface for Money) Aadhaar Pay; and (i) Tier-III: Full KYC Central Bank Digital Currency wallets, P-CBDC, Wholesale/Cross-border CBDC.
Rule breakdown
Use the list for the specified statutory provisions
The rule names Schedule VIII’s stated entry, section 66(32), section 146(5)(a)(ii)(B), and sections 185, 186 and 188. Its role is to identify other electronic modes for those provisions.
First identify the provision governing the payment. Do not assume the rule overrides the distinct conditions, thresholds or restrictions in every tax provision.
Recognised card and bank-transfer methods
The list includes credit cards, debit cards, net banking, IMPS, UPI, RTGS and NEFT. Preserve the transaction reference and evidence linking the payment to the relevant recipient and purpose.
A payment app’s brand name alone is not the statutory category. Identify the underlying payment mode used.
BHIM Aadhaar Pay and stated digital-currency categories
The rule also names BHIM Aadhaar Pay and the stated Tier-III full-KYC Central Bank Digital Currency wallets, P-CBDC and wholesale or cross-border CBDC categories.
This wording should not be generalised to every prepaid wallet, cryptocurrency or digital token. Confirm that the actual mode matches the listed category.
Keep payment evidence with the tax treatment
Retain confirmations, bank or wallet records, transaction identifiers and the underlying invoice or agreement. Reconcile the amount, date, payer and recipient to the tax computation or reporting position.
A recognised payment channel does not by itself establish deductibility, exemption or compliance with another condition of the linked provision.
Key takeaways
Provision-specific list
Use Rule 48 for the Act provisions it expressly identifies.
Common bank modes included
Cards, net banking, IMPS, UPI, RTGS and NEFT are named.
Digital-currency limits
Only the described CBDC categories are included, not every digital asset.
Practical checklist
- Identify the governing Act provision.
- Verify the actual payment mode and retain transaction evidence.
- Reconcile the payment to the relevant invoice or agreement.
Avoid
- Do not equate every wallet or token with a listed mode.
- Do not treat the payment channel as proof of every tax condition.
FAQs
Is UPI expressly listed?
Yes. Clause (e) includes Unified Payment Interface.
Does the rule approve every cryptocurrency payment?
No. It identifies specific electronic modes and described Central Bank Digital Currency categories.
Does using a listed mode automatically make an expense deductible?
No. The relevant deduction or other tax provision must still be satisfied.
Glossary
- UPI
- Unified Payment Interface, expressly listed in clause (e).
- CBDC
- Central Bank Digital Currency; Rule 48 lists specifically described categories.