Section 81A of ITA, 2000 : Section 81A: Application Of The Act To Electronic Cheque And Truncated Cheque

Explanation using Example

Let's consider a hypothetical scenario to illustrate the application of Section 81A of The Information Technology Act, 2000. Imagine Mr. Sharma, a businessman, issues an electronic cheque to his supplier, Mr. Gupta. However, there's a dispute over the authenticity of the electronic cheque. In this situation, the provisions of the Information Technology Act, 2000 would apply to this electronic cheque, ensuring its validity and authenticity. Any necessary modifications or amendments would be made in consultation with the Reserve Bank of India and notified in the Official Gazette by the Central Government, as per the Negotiable Instruments Act, 1881.

If any changes are proposed to the notification, they must be agreed upon by both Houses of Parliament within a total period of thirty days. If both Houses agree on any modification or decide that the notification should not be made, the notification will thereafter have effect only in the modified form or be of no effect. However, any such modification or annulment shall not affect the validity of anything previously done under that notification.

Thus, Section 81A ensures that the provisions of the IT Act, 2000 can be applied effectively to electronic cheques, providing legal validity and a framework for dispute resolution in cases like that of Mr. Sharma and Mr. Gupta.