This discussion clarifies whether Sections 269SS and 269T of the Income Tax Act are applicable when a loan given by an individual to a partnership firm is transferred to their son as a legal heir. The consensus is that these sections are not attracted as the transaction isn't in cash or via bank. However, the son, as a legal heir, retains the right to claim the money under general provisions, not specifically those of Sections 269SS and 269T.
07 June 2020
In case loan given by Mr. Dead to a Partnership Firm is transferred to his son in the books of borrower as per will of Mr. Dead - whether sec 269SS and 269T are attracted?