Income tax act 1961
This query is : Open
05 June 2017
Descriptions of U/s 269ss under the income tax act??
05 June 2017
subject to specified exceptions, a person shall not take or accept loan/depositfrom other person otherwise than by the prescribed banking channels i.e. A/c payee cheque or account payee bank draft or by use of electronic clearing system so that the aggregate from such person is Rs.20000/- or more.
In layman terms, cash loan or deposit from same person of Rs.20000/- or more is not allowable for the purpose of Section 269SS.
On Contraventions penalty U/s 271D is attracted which is 100% of the amount received.
Amendment:
Section amended by adding the sums received for transfer of immovable property (advance/ otherwise) whether or not ultimately the contemplated transfer takes place. Therefore, the seller of the immovable property will be liable to pay penalty on the amount accepted or taken in cash and not the buyer.
Implications:
Harsh penalty under section 271D to the transferor of immovable property being the recipient of money.
The provision of Section 269SS is not applicable to:
1) Government;
2) Any Banking Company;
3) Government Company and;
4) Any other person as notified by the Central Government.
5) To persons from whom the loan or deposit is taken or accepted and if 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.
6) Any corporation established by a Central, State or Provincial Act
05 June 2017
subject to specified exceptions, a person shall not take or accept loan/depositfrom other person otherwise than by the prescribed banking channels i.e. A/c payee cheque or account payee bank draft or by use of electronic clearing system so that the aggregate from such person is Rs.20000/- or more.
In layman terms, cash loan or deposit from same person of Rs.20000/- or more is not allowable for the purpose of Section 269SS.
On Contraventions penalty U/s 271D is attracted which is 100% of the amount received.
Amendment:
Section amended by adding the sums received for transfer of immovable property (advance/ otherwise) whether or not ultimately the contemplated transfer takes place. Therefore, the seller of the immovable property will be liable to pay penalty on the amount accepted or taken in cash and not the buyer.
Implications:
Harsh penalty under section 271D to the transferor of immovable property being the recipient of money.
The provision of Section 269SS is not applicable to:
1) Government;
2) Any Banking Company;
3) Government Company and;
4) Any other person as notified by the Central Government.
5) To persons from whom the loan or deposit is taken or accepted and if 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.
6) Any corporation established by a Central, State or Provincial Act
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05 June 2017
Thanks for reply Rashmi Mam
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05 June 2017
its very important section for using in Audit program; because i will doing a audit for a flour mill where such amounts are found in many traders a/c
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