Is 269SS applicable for Bank transactions done on behalf of spouse

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This query is : Resolved

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This discussion clarifies whether Section 269SS of the Income Tax Act applies when a husband makes payments via banking channels on behalf of his wife for a property purchase. The consensus is that as long as the transactions are conducted through proper banking channels and the wife later repays her husband with interest, Section 269SS, which prohibits cash transactions above a certain limit, is not applicable.

Shweta

Shweta (Querist)
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07 February 2023 Mr A and Mrs A are husband and wife. Mr A and Mrs A purchased a house property in February for Rs 50 Lakhs. Rs 20 Lakhs were paid by Mr A from his bank account to seller, property dealer, stamp duty etc.
Mrs A sold some shares in June for Rs 50 Lakhs.
She repaid Rs 21 Lakhs to Mr A along with reasonable rate of interest (considering his initial contribution as loan).
Query Can the funding / payments done by Mr A on behalf of Mrs A for the purchase of house property fall under section 269SS. All the payments by Mr A were done thru proper banking channels on behalf of Mrs A and later refunded through her Bank Account to Mr A bank account along with interest.