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TMI BlogCases and circumstances in which a payment or aggregate of payments exceeding twenty thousand rupees may be made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draftX X X X Extracts X X X X X X X X Extracts X X X X ..... n 40A shall be made and no payment shall be deemed to be the profits and gains of business or profession under sub-section (3A) of section 40A where a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or 3 [ account payee bank draft or use of electronic clearing system through a bank account or through such other electronic mode as prescribed under rule 6ABBA, exceeds ten thousand rupees ] 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 su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee; (e) where the payment is made for the purchase of- (i) agricultural or forest produce; or. (ii) the produce of animal husbandry (including livestock, meat, hides and skins) or dairy or poultry farming; or (iii) fish or fish products; or (iv) the products of horticulture or apiculture, to the cultivator, grower or producer of such articles produce or products; (f) where the payment is made for the purchase of the products manufactured or processed without the aid of power in a cottage industry, 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, profes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otes : 1. Has been substituted vide Notification No. 97/2008 dated 10/10/2008 before it was read as, [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. 6DD. No disallowance under clause (a) of sub-section (3) of section 40A shall be made and no payment shall be deemed to be the profits and gains of business or profession under clause (b) of sub-section (3) of section 40A where any payment in a sum exceeding twenty thousand rupees is made otherwise than by an account payee cheque drawn on a bank or account payee bank draft in the cases and circumstances specified hereunder, namely: (a) where ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Regulation Act, 1949 (10 of 1949)], whether incorporated or not, which is established outside India; (d) where the payment is made by way of adjustment against the amount of any liability incurred by the payee for any goods supplied or services rendered by the assessee to such payee; (e) where the payment is made for the purchase of (i) agricultural or forest produce; or (ii) the produce of animal husbandry (including livestock, meat, hides and skins) or dairy or poultry farming; or (iii) fish or fish products; or (iv) the products of horticulture or apiculture, to the cultivator, grower or producer of such articles, produce or products; (f) where the payment is made for the purchase of the products manufactured or p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r against purchase of foreign currency or travellers cheques in the normal course of his business. Explanation :For the purposes of this clause, the expressions authorised dealer or money changer means a person authorised as an authorised dealer or a money changer to deal in foreign currency or foreign exchange under any law for the time being in force.. ] 2. Substituted vide NOTIFICATION NO. 08/2020 dated 29-01-2020 before it was read as Cases and circumstances in which a payment or aggregate of payments exceeding twenty thousand rupees may be made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft. 3. Substituted vide NOTIFICATION NO. 08/2020 dated 29-01-202 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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