269ss/t accepting loan/deposit, repayment of loan

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CA JAYESH RELKAR (Querist)
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20 September 2013 Plz clarify me my doubt.

Case 1 : If Mr. A accepts loan from Mr. X on 01/04/2012 Rs. 19,000 and repaid the same on 02/04/2012. Later on Mr. A again accepts loan from Mr.X on 03/04/2012 Rs. 18,000 and repaid on 04/04/2012. In this case nowhere o/s balance exceeds Rs. 20,000 or more. Does section 269SS attracts?

Case 2 : If Mr.A accepts loan from Mr.X on 01/04/2012 Rs. 19,000 and on 02/04/2012 accepts loan of Rs. 17,000 and repaid in 6 instalment of Rs.6,000 in cash on different dates but in same F.Y.. In this case on 02/04/2012 o/s balance goes above 20,000 so, whether section 269SS attracts in this case?

CA JAYESH RELKAR

CA JAYESH RELKAR (Querist)
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20 September 2013 Plz assume in above question everywhere that payment or receipt of loan has made in cash

Ratan Sharma

Ratan Sharma (Expert)
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20 September 2013 In first case section 269SS will not be applicable as the o/s. balance does not exceed Rs. 20000/- or more. However in the second case it will be applicable . If the repayment is made in cash once the o/s balance is Rs. 20000 or more then sec 269T will also be applicable.

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