Amendments to sections 40A(3), 269SS and 269T by Direct Taxes Laws (Amendment) Act, 1987--Date of applicability--Clarification regarding - Income Tax - 522/1988

Amendments to sections 40A(3), 269SS and 269T by Direct Taxes Laws (Amendment) Act, 1987--Date of applicability--Clarification regarding. Circular No. 522 Dated 17/8/1988 Provisions of section 40A(3), 269SS and 269T of the Income-tax Act, 1961, have been amended by Direct Tax Laws (Amendment) Act (Act No. 4 of 1988) and consequently, the monetary ceilings prescribed under the aforesaid sections have been raised from Rs. 2,500 to Rs. 10,000, Rs. 10,000 to Rs. 20,000 and Rs. 10,000 to Rs. 20,000 respectively. As per provisions of section 1(2) of the Direct Tax Laws (Amendment) Act, these changes have been made effective from 1-4-1989. 2. Board has received a number of representations regarding the date of applicability of the above mentioned amended sections of the Income-tax Act. It is hereby clarified that the amended provisions of sections 269SS and 269T will apply to payments or repayments made on or after 1-4-1989. In respect of disallowance of payments made under section 40A(3), the amendment will apply to payments made in the previous year relevant to the assessment year 1989-90 and subsequent years.