<h1>Income-tax Rules Amended: Payments Over Rs. 20,000 via Credit/Debit Cards Allowed u/s 40A for Specific Transactions.</h1> The Central Board of Direct Taxes has amended the Income-tax Rules, 1962, allowing payments exceeding Rs. 20,000 through credit cards, debit cards, or electronic clearance without disallowance under Section 40A. This amendment, effective from the assessment year 2008-09, specifies circumstances where such payments are permissible, including transactions with government entities, banks, and certain financial institutions, or for specific purchases like agricultural produce. It also covers payments made in areas without banking services, certain employee payments, and transactions by authorized dealers in foreign currency. These changes aim to modernize and simplify payment processes under the tax framework.