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Discussion > Income Tax > Tax queries >

Sec. 269 SS and TT

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B.Com, CA Final

[ Scorecard : 115]
Posted On 12 August 2010 at 18:43 Report Abuse

Hello Everyone,

Please any one can explain me in detail regarding Sec. 269 SS and TT?

When it is applicable?

Please give your golden reply with a example.

I will be thankful to you.



Total thanks : 1 times

Online classes for CA CS CMA



Bhavin Bhadra
Job

[ Scorecard : 165]
Posted On 12 August 2010 at 21:20

Dear Hardik,

 

269ss and 269T are clauses of Tax audit and are applicable when loan is taken in excess of Rs.20000/- and for repayment of the said loan.



Total thanks : 2 times




CA SURENDRA KUMAR RAKHECHA
Practising CA at Surat

[ Scorecard : 25328]
Posted On 13 August 2010 at 10:10

I appreciate the answer given by Bhavin Bhadra, Articled Clerk which is based on his practical experience.  Articled clerks should try to give answer. If  something wrong is (t)here ;  it would be rectified here. 

 

Sec. 269SS : Acceptance of loans of Rs.20,000 or more otherwise than account payee cheque or draft.

 

Sec. 269T : Repayment of loans of Rs.20,000 or more otherwise than account payee cheque or draft.

 

These provisions are applicable to all without only restrictions to tax audit cases. 

 

In Tax audits; these are specifically to be reported. 

 

Tutorials  :

 

Once the amount of loan reaches or crosses Rs.20,000; no further loan should either be taken or repaid otherwise than by account payee cheque or bank draft.

 

For example; one can take loan of Rs.19,999/- in cash (Not Rs.20,000/-). The next amount he cannot take otherwise than the modes described above. 

 

Similarly; if the amount of loan crosses Rs.19,999/- the repayment must be made only through account payee cheque or draft.

 

If one does not follow the provisions of these sections-

 

A PENALTY EQUAL TO THE AMOUNT OF THE  LOAN IS LEVIABLE  

 

by the  Income-Tax Department.

 

Exception :

If loan is repaid in cash to the Bank, Govt., Govt. Co., and SMCs. etc.; then these provisions are not applicable. 



Total thanks : 3 times



Senthil Kumar
Student

[ Scorecard : 60]
Posted On 29 January 2011 at 11:20

Sir,

 

Provisions of sections 269SS and TT are applicable for Gold Loan..?

In gold loan repayment is it necessary to comply with such provision.?

 

Please advice.



Total thanks : 1 times



CA SURENDRA KUMAR RAKHECHA
Practising CA at Surat

[ Scorecard : 25328]
Posted On 29 January 2011 at 21:38

Originally posted by : Senthil Kumar
Sir,
 
Provisions of sections 269SS and TT are applicable for Gold Loan..?
In gold loan repayment is it necessary to comply with such provision.?
 
Please advice.

The query is not clear. Do you mean GOLD taken as loan ?  



Total thanks : 1 times



CA PARAS BAFNA
Practising CA

[ Scorecard : 29211]
Posted On 30 January 2011 at 10:32

Gold loans means loans taken against Gold. The provisions of  269T are applicable to loan or deposit of any nature.

*

Gold Loan can be  repaid in cash to a Bank - Second Proviso of Section 269T

*

Sometimes, the account is settled by selling the gold to the lender and balance amount is received/paid.

In my opinion, adjustment of existing loan is tantamount to repayment of loan.

In my personal view, it may be allowed in such cases where gold is a capital asset of the borrower

or there is no alternative available to THE BORROWER to repay the loan. 

*

Expert opinions are required on this issue. 



Total thanks : 2 times



varun jain
Employed

[ Scorecard : 358]
Posted On 31 January 2011 at 00:45

In addition to Surender Sir's reply,

The MP High Court in the case of CIT Vs Indore Plastics Pvt Ltd (2003) 262 ITR 163, held that section 269SS lack application where receipt is neither a deposit nor a loan. Mere adjustment of amount which owed to a company will not fall within the meaning of section 269SS of the IT Act, 1961.



Total thanks : 2 times



ketki
CA

[ Scorecard : 44]
Posted On 25 August 2011 at 16:06

Is sec 269T and 269SS apply to secured loan or unsecured loans?




CHIRAG DEEPAK GANATRA
CA FINAL

[ Scorecard : 1007]
Posted On 25 August 2011 at 19:18

69ss and 269T are clauses of Tax audit and are applicable when loan is taken in excess of Rs. 20000/- and for repayment of the said loan.



Total thanks : 1 times



abhishek
n.a

[ Scorecard : 43]
Posted On 01 October 2012 at 13:11

Dear Members,

I need your advice on two issues

1. What is the consequences upon a person giving loan. Does a person would be liable to any penalty if he give loan forgetting the consequences being faced by the person accepting that loan.

2. Companies like muthooth finance give loan in HARD CASH against pledge of gold upto 10 Lakhs. How do these companies and the person taking loan escape the provision of Sec 269SS & 269T.

Thank You

Please reply
slgabhi @ gmail.com



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