Related section 269ss
Querist : Anonymous
Should be show interest amount in audit report.
Querist : Anonymous
I m leaving the question open for other experts to comment
Kindl check again. 269SS doesn't apply for loans given. It is applicable to loans accepted. 269T on the other hand applies to repayment of loans.
In the querist's case, 269SS is applicable for the loans taken in cash. 269T will apply when he repays if he makes payment in cash.
my reply was to your comment that 269SS applies to loans given (now given that you have amended your earlier reply, can't help).
Querist : Anonymous
please read carefully my question.
myself asking that if interest is outstanding not paid during the financial year,, then in which section interest amount should be show under 269ss or 269t
Quick recap:
Section 269SS: Prohibits acceptance of loans or deposits or advances in cash exceeding Rs 20,000.
Section 269T: Prohibits repayment of loans or deposits or advances in cash exceeding Rs 20,000.
Your question:
If interest on loan is outstanding (not paid) during the financial year, where should this be shown — under Section 269SS or Section 269T?
Explanation:
Interest Outstanding (Unpaid Interest)
Since interest is not accepted as a fresh loan in cash, Section 269SS (acceptance of loans) is NOT applicable for interest outstanding.
Interest is a payment obligation (like repayment) when paid.
But as the interest is outstanding and not paid, no cash transaction has occurred.
Section 269SS Applicability
Applies only when the principal amount of loan or advance is accepted in cash above Rs 20,000.
Interest amount (outstanding or paid) is not acceptance of loan.
Section 269T Applicability
Applies when repayment of loan or advance is made in cash exceeding Rs 20,000.
Interest paid in cash above Rs 20,000 may fall under 269T.
But interest outstanding (unpaid) is not a repayment transaction yet, so 269T does not apply to outstanding interest.
So, to sum up:
Situation Section applicable Reason/Explanation
Loan accepted in cash > Rs 20,000 269SS Acceptance of loan/principal in cash
Loan repayment in cash > Rs 20,000 269T Repayment in cash
Interest outstanding (not paid) Neither 269SS nor 269T No cash transaction has taken place
Interest paid in cash > Rs 20,000 Could attract 269T Payment (repayment-like transaction) in cash
Should interest amount (outstanding or paid) be shown in audit report under these sections?
Outstanding interest (not paid): No need to report under 269SS or 269T.
Interest paid in cash exceeding Rs 20,000: Yes, report under Section 269T in the audit report.
Final Note:
When preparing audit reports or tax returns, focus on the cash transactions.
Outstanding balances (accrued but unpaid) are not cash transactions and do not attract Sections 269SS or 269T.
Click here to login now
Similar Resolved Queries
- LTCG EXEMPTION AND TAX APPLICABILITY
- ITR 3 VALIDATION
- Brokage income from sale and purchase of property
- EPF withdrawal before 5 years and Disclosure in ITR-2
- Error while validating
- 44AD business and F&O loss
- Clarification on ITR 3: Is Sl. No. 64 required for 44ADA income?
- Investment guidance for NRI
- How to show Capital Gain from Debt Mutual Funds in ITR?
- Income Tax Slab - Marginal relief for surcharge
- Rule 54(1A) of C
- Accounting entry for instalment payments and gst obigations
- Purchase of Time Deposit in AIS
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Composition Dealer GST Annual Return Filing process
- Stamp Duty & Registration Fees on Sale Deed
- GST on Restaurant service
- Revision under Section 264 in The Income Tax Act, 1961
- TDS under section 195.
- Filing GST Returns after death of proprietor
Trending Online Classes
-
Input Tax Credit, GST refunds and Recovery of refunds- Roadblocks and way outs
CA Nipun Arora03 September 2025 -
GST LIVE Certification Course - 43rd Weekdays Batch(With Govt Certificate)
Industry Expert15 September 2025
CAclubindia
