Income-tax (Sixteenth Amendment) Rules, 2000 - S.O. 806(E) - Income Tax

Cash payment exception for authorised dealers allows cash purchases of foreign currency despite limits under Section 40A(3).

Amendment inserts clause (m) into rule 6DD permitting cash payments by authorised dealers or money changers for purchase of foreign currency or travellers cheques in the normal course of business despite the restriction in sub-section (3) of Section 40A, and defines 'authorised dealer' or 'money changer' as persons authorised to deal in foreign currency or foreign exchange under law; the amendment is given retrospective effect to address hardships arising from the earlier omission.