VittSphere ONE Calculators Blog CA Firm CA Prabhakar Kumar · FCA · ICAI 560762
Calculators Blog Handle my notice
Case law › Notifications › 2006 › Notification No. 314
Notification 9 November 2006

Notification No. 314

Amendment of the Income-tax Rules under section 295 of the Income-tax Act, 1961

What this is

Notification No. 314 was published on 9 November 2006. Its subject is Amendment of the Income-tax Rules under section 295 of the Income-tax Act, 1961.

This amends the Income-tax Rules. What it changes is the Rules, not the Act — and a rule can never take away what the section gives.

What it does

Under section 295 of the Income-tax Act, 1961, the Central Board of Direct Taxes makes the Income-tax (13th Amendment) Rules, 2006, amending rule 6DD of the Income-tax Rules, 1962. In the heading to rule 6DD and in the body of the rule, the words "a crossed cheque drawn on a bank or by a crossed bank draft" are substituted by the words "an account payee cheque drawn on a bank or account payee bank draft". The mode of payment that keeps a payment outside the disallowance is thus narrowed from a crossed cheque or crossed draft to an account payee cheque or account payee bank draft.

Who it reaches

The provisions it speaks to

Left, the provision of the Income-tax Act, 1961 as the instrument itself names it. Right, the section of the Income-tax Act, 2025 that the department’s own concordance maps it to — which is where the same ground is now covered.
Under the 1961 ActNow
s.295s.533

The instrument, as the Board published it

The words below are the department’s own, reproduced from its published text. Where the department’s copy carried a publisher’s notes after the instrument, those are not reproduced.

NOTIFICATION NO.314/2006, DATED 9-11-2006

In exercise of the powers conferred by section 295 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 (13th Amendment) Rules, 2006.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Income-tax Rules, 1962,-
(a) in the heading to rule 6DD, for the words "a crossed cheque drawn on a bank or by a crossed bank draft", the words "an account payee cheque drawn on a bank or account payee bank draft" shall be substituted;

(b) in rule 6DD, for the words "a crossed cheque drawn on a bank or by a crossed bank draft", the words "an account payee cheque drawn on a bank or account payee bank draft" shall be substituted.

[F. No. 142/38/2006-TPL]

What it changes

The rule numbers are the 1962 Rules’ own, as the notification names them. The right-hand column is the department’s own mapping into the Income-tax Rules, 2026, which renumbered nearly everything.
Rule of the 1962 RulesNow, in the 2026 Rules
Rule 6DDrule 26

From when

the date of publication in the Official Gazette.

What to watch

Where you meet it

In the disallowance proposed under sub-section (3) of section 40A in an assessment, and in the tax audit report where the mode of payment is reported.

What it names

Rules it names. Rule 6DD of the Income-tax Rules, 1962. The 1962 Rules were replaced by the Income-tax Rules, 2026, which renumbered nearly everything: a rule number quoted here almost never means the same rule today.

On the same provision

Other instruments in this library that name the same provision of the 1961 Act. They are not necessarily still operative, and a later one may have replaced an earlier one without saying so.

← Notification No. 315  ·  Notification No. 313 →

What a notification is. A notification is made under a power the Act itself gives, and within that power it is law — unlike a circular, which only binds the department. Its reach is the reach of the enabling provision and no wider, and the date it carries decides from when it works.

Source: the Income Tax Department’s own published text — its page for this instrument.