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

CBDT Amends Rule 6DD: Exceptions for Cash Payments Over 20,000 Without Account Payee Cheque or Draft

The Central Board of Direct Taxes issued the Income-tax (Seventh Amendment) Rules, 2008, amending Rule 6DD of the Income-tax Rules, 1962. This amendment outlines specific cases where payments exceeding twenty thousand rupees can be made without using an account payee cheque or draft. Exceptions include payments to banks, government, or through electronic means, and transactions involving agricultural produce, cottage industry products, or in areas without bank services. It also covers specific situations like employee payments under certain conditions, payments on bank holidays, and transactions by authorized dealers in foreign currency. The rules apply from the assessment year 2009-10.