Disallowance of expenditure for which payment exceeding Rs. 2,500 is made otherwise than by crossed cheque/bank draft under sub-section (3), read with rule 6DD of the Income-tax Rules - Scope and operation of the sub-section explained
📋
Contents
Cases Cited
Referred In
Notifications
Circulars
Forms
Manuals
Acts
Rules & Regulations
Case Laws New
Ref Provisions New
Plus +
Source NTF
Summary
Similar
Note
Bookmark
Share
✓ Copied successfully !
Print
Print Options
For full text, please login
Login to TaxTMI
Verification Pending
The Email Id has not been verified. Click on the link we have sent on
Payment-method requirement: deductible business payments above threshold must be by crossed cheque, subject to specified exclusions and evidence rules. Section 40A(3) conditions deduction on payment method: deductible payments exceeding the threshold must be by crossed bank cheque or draft, with exclusions under rule 6DD for specified categories (pre-existing cash contracts, book adjustments, payments in areas without banking, payments to producers of agricultural/forest/animal-husbandry/dairy/poultry/horticulture/pisciculture and cottage-industry products, payments to banking/financial institutions, payments via banking instruments, terminal benefits to low-paid employees) and a residuary exception permitting non-cheque payments in exceptional circumstances upon satisfactory proof of genuineness and payee identity.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Payment-method requirement: deductible business payments above threshold must be by crossed cheque, subject to specified exclusions and evidence rules.
Section 40A(3) conditions deduction on payment method: deductible payments exceeding the threshold must be by crossed bank cheque or draft, with exclusions under rule 6DD for specified categories (pre-existing cash contracts, book adjustments, payments in areas without banking, payments to producers of agricultural/forest/animal-husbandry/dairy/poultry/horticulture/pisciculture and cottage-industry products, payments to banking/financial institutions, payments via banking instruments, terminal benefits to low-paid employees) and a residuary exception permitting non-cheque payments in exceptional circumstances upon satisfactory proof of genuineness and payee identity.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
