Electronic payment requirement reduces cash-payment threshold for deductibility and mandates bank electronic clearing for expenses.

Amendment expands acceptable payment modes by inserting electronic clearing system through a bank account into section 40A's payment rules and reduces the cash payment threshold that triggers disallowance treatment. The changes apply to sub sections (3), (3A) and (4) - adding electronic clearing alongside account payee bank drafts and cheques, and substituting a lower cash limit throughout those provisions - while the proviso in sub section (2) is adjusted to preserve application for specified earlier assessment years.

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