17 May 2017
Giving bank 20000 for DD of same is not an expense. Its conversion of one form of money to another. The payment to creditor of 20000 will be allowed in income tax. This limit has been reduced to 10000 by finance act 2017
18 May 2017
Personally i have never seen bearer drafts as account payee is already printed on drafts and while applying fir DD you have to tell the name of the payee.
18 May 2017
Anyway the purpose of the clause is to discourage large payments in cash therefore if you pay through bank your expense will be allowable.
Bearer instruments are rare practically.