Surya Gayathri R Shenoi (CA FINAL) (29 Points)
15 September 2014Hi,
I would like to know whether the cash transaction entered into by a Director of a closely held private company,in the company in which he acts as a Director is subjected to 269SS or 269T as per The Income Tax Act.
Shivani Sharma
(CA FINAL)
(587 Points)
Replied 15 September 2014
Section 269SS
No Person shall, take or accept from any other person (herein after called “depositor)any loans or deposits otherwise than by an account payee cheque or account payee draft if:- (a) The amount of such loan or the aggregate amount of such loan and deposit, is Rs.20,000/- or more, or (b) On the date of taking or accepting such loan or deposit, any loan or deposit accepted earlier by such person from the depositor is remaining unpaid is Rs.20,000/- or more (c) The aggregate of the amount of loan or deposit to be taken and the amount of loan or deposit taken earlier which is outstanding on the date on which loan or deposit is to be taken is Rs.20,000/- or more. The provisions of this section shall not apply to any loan or deposit taken or accepted from or any loan or deposit taken or accepted by, (i) Government (ii)Any banking company, post office saving bank or cooperative bank (iii) Any corporation established by a central, state or provincial act. (iv) Any government company -
Sec-269T
No branch of a banking company or cooperative bank and no other company or cooperative society and no firm or other person shall repay any loan or deposit made with it otherwise than by an account payee cheque or account payee draft drawn in the name of the person who has made the loan or deposit if- (a) The amount of the loan or deposit together with interest payable thereon is Rs.20,000 or more or (b) The aggregate amount of the loan or deposits held by such person with the branch of a banking company or cooperative bank of other company or cooperative society or firm or other person, either in his own name or jointly with any other person on the date of such repayment together with interest if any payable on such loan or deposit is Rs.20,000/- or more.
Nothing contained in this section shall apply to repayment of any loan or deposit taken or accepted from :- (i) Government (ii) Any banking company, post office savings bank or co-operative bank (iii) Any corporation established by a central, state or provincial act (iv) Any government company as defined in section 617 of the companies act 1956.
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