Knowing Section 114 (b) of the Income Tax Act is important for foreign travellers

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One rule of the Income Tax Act that is going to have far reaching consequences – and one that all travellers should be aware of – is Section 114 (b). This rule pertains to payment in cash – in connection with travel to any foreign county – of an amount exceeding twenty-five thousand rupees at any one time. It states that all such payments will have to be backed by PAN Card details.  

“Payment in cash in connection with travel” includes payment in cash towards fare, or to a travel agent or a tour operator, or for the purchase of foreign currency.

The expression “travel to any foreign country” does not include travel to the neighbouring countries or to such places of pilgrimage as may be specified by the Board under Explanation 3 of sub-section (1) of section 139.

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