(a) payment made to-

(i) the Reserve Bank of India or any banking company

(ii) the State Bank of India or any subsidiary bank

(iii) any co-operative bank or land mortgage bank

(iv) any primary agricultural credit society or any primary credit society

(v) the Life Insurance Corporation of India

The following organisations are deleted from the list

(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) ;

(b) where the payment is made to the Government and, under the rules framed by it, such payment is required to be made in legal tender

(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.

(v, vi and vii are newly added in tune with the technology development)

(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 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, 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 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 rupees;

(i) where the payment is made by an assessee by way of salary to his employee after deducting the income-tax from salary in accordance with the provisions of Section 192 of the Act, and when such employee-

(i) is temporarily posted for a continuous period of fifteen days or more in a place other than his normal place of duty or on a ship; and

(ii) does not maintain any account in any bank at such place or ship;

(j) where the payment was required to be made on a day on which the banks were closed either on account of holiday or strike;

(k) where the payment is made by any person to his agent who is required to make payment in cash for goods or services on behalf of such person;

(l) where the payment is made by an authorised dealer or a money changer against purchase of foreign currency or travellers cheques in the normal course of his business.