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269SS & 269T

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This query is : Resolved

Harishankar Thakur (Querist)

14 January 2011 Dear All...
If a person Paying Rs.200000 as loan amount by account payee cheque and 2000 intt. by cash... whether section 269T get attracted?

If yes... Explain please.. instead of quoting section 269SS and 269T..

Thanks & Regard
Harishankar Thakur

CA B.S.Sridhar

CA B.S.Sridhar (Expert)

14 January 2011 Yes. It will get attracted.

In accrual basis of accounting, the Interest which is due first accrues and gets credited to the Loan Creditor's account and subsequently interest is paid , the loan creditor's account is debited.
On account of the same the payment takes the character of payment to loan creditor whose balance exceeds Rs.20000 and hence it has to be necessarily done by either Crossed Cheque/ Demand draft.

Message likes : 2 times

Harishankar Thakur

Harishankar Thakur (Querist)

14 January 2011 Thanks a lot sir.. I was confused in interpretation... well explained.

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