Applicability of provisions 269ss or 269t as per i.t.act

Tax queries 1224 views 2 replies

CA Sanjay Baheti

PROPRIETOR

1160 Points Joined January 2010

Dear Experts,

One of my client being an individual covered under Tax Audit for F.Y.2013-14. During the year under audit he has accepted in cash on different dates as deposits or unsecured loans from Family Members which is less than Rs 20000/- for each day.

Similarly also he has paid in cash on different dates against repayment of such unsecured Loans or Deposits to family members which is also less than Rs 20000/- on each day during the same year.However the total amount accepted or repaid during the year under audit in cash which is exceeding Rs.20000/-

Now query is whether provisions of section 269SS or T is invoked or not for purposes of reporting in TAR.

If reported then penal provision will be also invoked.

Please reply/suggest properly

Replies (2)

Karthik.V.Kulkarni

Chartered Accountant

594 Points Joined December 2012

Hi Sanjay,

For attraction of 269 ss & T the crietieria is whether the aggregate of loan exceeds 20000. If so then it will be attracted .

Rahul Kumar

ARTICLE ASSISTENT

147 Points Joined September 2012

No person can accept any loan or deposit of Rs 20000 or more otherwise than by way of an account payee cheque or an account payee draft. The limit of Rs 20000 will also apply to a case, if the date of taking or accepting such loan or deposit are different.

Example: If Mr X has a credit balance of a loan of Rs 19000 from Mr Y. Now in this case Mr X cannot take loan in excess of Rs 999 more from Mr Y except with an account payee cheque or account payee bank Draft.