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

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 https://www.taxtmi.com/circulars?id=4442 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. en-us Mon, 29 Dec 1969 00:00:00 +0530 Sat, 09 Aug 2008 11:33:00 +0530 TaxTMI RSS Generator 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 https://www.taxtmi.com/circulars?id=4442 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. Circulars Income Tax Mon, 29 Dec 1969 00:00:00 +0530 https://www.taxtmi.com/circulars?id=4442