30 August 2014
As per Section 269SS and 269T, Loans more than Rs. 20000/- shall be paid or accepted through Account Payee Cheque or Bank Draft only. In an instant case of one of my client they have accepted and repaid loans through RTGS and Online tranfers and ITO for assessment year 2012-13 is contending the same to be in violation of Section 269SS and 269T. Kindly suggest if ITO is correct or if there is any case study / case law for the same.
30 August 2014
If loan is taken through cash then only it is violation. If it is through RTGS it is not a violation, as is it one of the payment mode through banking channels.
01 September 2014
But as per wording of act the transaction shall only be through Account Payee cheque or account payee Bank DD only. RTGS is not a valid as per the ITO
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