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6DD. No disallowance under
sub-section (3) of section 40A shall
be made 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 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) ;
(iii) any co-operative bank or
land mortgage bank ;
(iv) any primary agricultural
credit society as defined in clause (cii) of section 2 of the
Reserve Bank of India Act, 1934 (2 of 1934), or any primary credit
society as defined in clause (civ) of that section ;
(v)the Life Insurance
Corporation of
India established under
section 3 of the Life Insurance Corporation Act, 1956 (31 of 1956) ;
(vi)
the Industrial Finance Corporation of
India
established under section 3 of the Industrial Finance Corporation Act,
1948 (15 of 1948) ;
(vii)
the Industrial Credit and Investment Corporation of India Ltd. ;
(viii)
the Industrial Development Bank of India established under section 3
of the Industrial Development Bank of India Act, 1964 (18 of 1964) ;
(ix)
the Unit Trust of
India
established under section 3 of the Unit Trust of India Act, 1963 (52
of 1963) ;
(x)
the Madras Industrial Investment Corporation Ltd., Madras ;
(xi)
the Andhra Pradesh Industrial Development Corporation Ltd., Hyderabad
;
(xii)
the Kerala State Industrial Development Corporation Ltd., Trivandrum ;
(xiii)
the State Industrial and Investment Corporation of Maharashtra Ltd.,
Bombay ;
(xiv)
the Punjab State Industrial Development Corporation Ltd., Chandigarh ;
(xv)
the National Industrial Development Corporation Ltd., New Delhi ;
(xvi)
the Mysore State Industrial Investment and Development Corporation
Ltd., Bangalore ;
(xvii)
the Haryana State Industrial Development Corporation Ltd., Chandigarh
;
(xviii)
any State Financial Corporation established under section 3 of the
State Financial Corporations Act, 1951 (63 of 1951) ;
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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 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);
(iii) any co-operative bank or
land mortgage bank;
(iv) any primary agricultural
credit society or any primary credit society as defined under section
56 of the Banking Regulation Act, 1949 (10 of 1949);
(v) the Life Insurance
Corporation of
India established under
section 3 of the Life Insurance Corporation Act, 1956 (31 of 1956); |
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(d) where the payment is made
by-
(i) any letter of credit
arrangements through a bank ;
(ii) a mail or telegraphic
transfer through a bank ;
(iii) a book adjustment from
any account in a bank to any other account in that or any other bank ;
(iv) a bill of exchange made
payable only to a bank.
Explanation : For the
purposes of this clause and clause (h), 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 Regulation Act, 1949 (10 of 1949)], whether incorporated or
not, which is established outside India ; |
c) where the payment is made by-
(i) any letter of credit
arrangements through a bank;
(ii) a mail or telegraphic
transfer through a bank;
(iii) a book adjustment from any
account in a bank to any other account in that or any other bank;
(iv) a bill of exchange made
payable only to a bank;
(v)
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
Regulation Act, 1949 (10 of 1949)], whether incorporated or not, which
is established outside India; |
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(i) where any payment by way
of gratuity, retrenchment compensation or similar terminal benefit, is
made to an employee of the assessee or the heirs of any such employee
on or in connection with the retrenchment, resignation, discharge or
death of such employee, if the income chargeable under the head
"Salaries" of the employee in respect of the financial year in which
such retirement, resignation, discharge or death took place or the
immediately preceding financial year did not exceed Rs. 7,500 |
h)
where any payment is made to an employee of the assessee or the heir
of any such employee, on or in connection with the retirement,
retrenchment, resignation, discharge or death of such employee, on
account of gratuity, retrenchment compensation or similar terminal
benefit and the aggregate of such sums payable to the employee or his
heir does not exceed fifty thousand |
