TaxTMI 
TaxTMI 
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
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.... NOTIFICATION NO. 97/2008 [F.No.142/l0/2008-TPLI], DATED 10-10-2008 In exercise of powers conferred by section 295 read with proviso to sub section (3A) of 40A of the income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely: 1. (1) These rules may be called the Income-tax (7th Amendment) Ru....
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....es in the cases and circumstances specified hereunder, namely :- (a) where the payment is made to— (i) the Reserve Bank of India or any banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949): (ii) the State Bank of India or any subsidiary bank as defined in section 2 of the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959....
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....) the use of electronic clearing system through a bank account (vi) a credit card; (vii) a debit card. Explanation.— For the purposes of this clause and clause (g), the term "bank means any bank, banking company or society referred to in sub-clauses (i) to (iv) of clause (a) and includes any bank [not being a banking company as defined in clause (c) of section 5 of the Banking Regu....
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....y, to the producer of such products; (g) where the payment is made in a village or town, which on the date of such payment is not served by any bank, to any person who ordinarily resides, or is carrying on any business, profession or vocation, in any such village or town; (h) where any payment is made to an employee of the assessee or the heir of any such employee on or connection with the r....