about sec. 269ss and 269t


(Querist)
27 May 2010
plzzz explain me about the section 269ss and section 269t under income tax and its penalty. whether section 269ss and section 269t is applicable to individual assessee or not??? whether advance paid to creditors or received from debtors for sale/ purchase of goods has covered under this section..???

plzzz clarify in detail...and thanx in advance....


CA. BIJENDER KR. BANSAL (Expert)
27 May 2010
section 269 SS
[CHAPTER XX-B

REQUIREMENT AS TO MODE OF 2[ACCEPTANCE, PAYMENT OR] REPAYMENT IN CERTAIN CASES TO COUNTERACT EVASION OF TAX

3[Mode of taking or accepting certain loans and deposits.

269SS. No person shall, after the 30th day of June, 1984, take or accept from any other person (hereafter in this section referred to as the depositor), any loan or deposit otherwise than by an account payee cheque or account payee bank draft if,—

(a) the amount of such loan or deposit or the aggregate amount of such loan and deposit ; or

(b) on the date of taking or accepting such loan or deposit, any loan or deposit taken or accepted earlier by such person from the depositor is remaining unpaid (whether repayment has fallen due or not), the amount or the aggregate amount remaining unpaid ; or

(c) the amount or the aggregate amount referred to in clause (a) together with the amount or the aggregate amount referred to in clause (b), is 4[twenty] thousand rupees or more :

Provided that 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,—

(a) Government ;

(b) any banking company, post office savings bank or co-operative bank ;

(c) any corporation established by a Central, State or Provincial Act ;

(d) any Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956) ;

(e) such other institution, association or body or class of institutions, associations or bodies which the Central Government may, for reasons to be recorded in writing, notifyin this behalf in the Official Gazette :

5[Provided further that the provisions of this section shall not apply to any loan or deposit where the person from whom the loan or deposit is taken or accepted and the person by whom the loan or deposit is taken or accepted are both having agricultural income and neither of them has any income chargeable to tax under this Act.]

Explanation.—For the purposes of this section,—

6[(i) "banking company" means a company to which the Banking Regulation Act, 1949 (10 of 1949), applies and includes any bank or banking institution referred to in section 51 of that Act ;]

(ii) "co-operative bank" shall have the meaning assigned to it in Part V of the Banking Regulation Act, 1949 (10 of 1949) ;

(iii) "loan or deposit" means loan or deposit of money.]








CA. BIJENDER KR. BANSAL (Expert)
27 May 2010
section 269 T
Mode of repayment of certain loans or deposits.

269T. No branch of a banking company or a co-operative bank and no other company or co-operative 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 bank 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 the interest, if any, payable thereon, or

(b) the aggregate amount of the loans or deposits held by such person with the branch of the banking company or co-operative bank or, as the case may be, the other company or co-operative society or the firm, or other person either in his own name or jointly with any other person on the date of such repayment together with the interest, if any, payable on such loans or deposits, is twenty thousand rupees or more:

Provided that where the repayment is by a branch of a banking company or co-operative bank, such repayment may also be made by crediting the amount of such loan or deposit to the savings bank account or the current account (if any) with such branch of the person to whom such loan or deposit has to be repaid :

2[Provided further that 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 companyas defined in section 617 of the Companies Act, 1956 (1 of 1956);

(v) such other institution, association or body or class of institutions, associations or bodies which the Central Government may, for reasons to be recorded in writing, notify in this behalf in the Official Gazette.]

Explanation.—For the purposes of this section,—

(i) "banking company" shall have the meaning assigned to it in clause (i) of the Explanation to section 269SS;

(ii) "co-operative bank" shall have the meaning assigned to it in Part V of the Banking Regulation Act, 1949 (10 of 1949);

(iii) "loan or deposit" means any loan or deposit of money which is repayable after notice or repayable after a period and, in the case of a person other than a company, includes loan or deposit of any nature.]




CA. BIJENDER KR. BANSAL (Expert)
27 May 2010
These sections are applicable to individual assessee also if he is covered under tax audit.

These sections are not apply to
- Advance paid to supplier and
- Advance recd form customer

GAURAV JAIN (Querist)
27 May 2010
it means that if individual/ any other assessee has not covered under tax audit then this section will not be applicable.??

if we paid/ received any amount in cash (exceed rs. 20000/=) from/to any debtor/ creditor and afterwords the contract of sale/ purchase has cancelled then there is no penalty will arise under income tax..

plzzz clarify me...

GAURAV JAIN (Querist)
27 May 2010
it means that if individual/ any other assessee has not covered under tax audit then this section will not be applicable.??

if we paid/ received any amount in cash (exceed rs. 20000/=) from/to any debtor/ creditor and afterwords the contract of sale/ purchase has cancelled then there is no penalty will arise under income tax..

plzzz clarify me...

GAURAV JAIN (Querist)
27 May 2010
it means that if individual/ any other assessee which has not covered under tax audit then this section will not be applicable.??

if we paid/ received any amount in cash (exceed rs. 20000/=) from/to any debtor/ creditor and afterwords the contract of sale/ purchase has cancelled then there is no penalty will arise under income tax..

plzzz clarify me...

CA. BIJENDER KR. BANSAL (Expert)
27 May 2010
yES,
iN CASE OF PAYMENT MADE TO SUPPLIER FOR PURCHASE OF MATERIAL EXCEEDING rS.20000, THEN SECTION 40A(3) APPLY.


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