SUBSTITUTION OF RULE 6DD - Cases and circumstances in which payment in a sum exceeding twenty thousand rupees may be made otherwise than by an account payee cheque drawn on a bank or account payee bank draft - 97/2008 - Income Tax

Permitted cash payment exceptions clarified, listing specified banks, electronic transfers, producer purchases, and village payments.

Enumerates exceptions to the general prohibition on cash payments above the prescribed threshold for tax disallowance: payments to specified banks, credit societies and the national life insurer; Government payments required in legal tender; transfers through banking instruments and electronic systems; adjustments against liabilities; purchases of agricultural, animal husbandry, fish, horticulture, apiculture and cottage-industry products from producers; payments in bankless localities; specified employee terminal benefits and temporary salary payments lacking local bank accounts; payments on bank-closed days; agent cash disbursements; and authorised dealer or money changer foreign-currency purchases.