Doubt

I DO NOT AGREE WITH Mr. SHAILESH, Since Sec 269 SS is applicable:-

1) ONLY IN CASE OF ACCEPTANCE OF LOAN (OR AGGREGATE OF LOANS IN A FINANCIAL YEAR) IS rS. 20,000 OR MORE AND NOT IN THE CASE OF MERE TRANFER OF FUNDS.

2) IT IS APPLICABLE EVEN IF PARTIES ARE NOT RELATED (THERE IS NO SUCH CONDITION)

In short Sec 269 SS says THAT IF A PERSON ACCEPTS A LOAN(EVEN IN PARTS) EXCEEDING Rs. 20,000, OTHERWISE THEN BY AN ACCOUNT PAYEE CHEQUE/DRAFT THEN THERE SHALL BE LEVEID A PENALTY EQUAL TO 100% OF SUCH LOAN..

BARE TEXT OF SEC 269 SS IS PRODUCED BELOW:-

[Mode of taking or accepting certain loans and deposits.

269SS. No person shall, after the 30th day of June, 1984, take or accept from any other person (hereafter in this section referred to as the depositor), any loan or deposit otherwise than by an account payee cheque or account payee bank draft if,—

(a) the amount of such loan or deposit or the aggregate amount of such loan and deposit ; or

(b) on the date of taking or accepting such loan or deposit, any loan or deposit taken or accepted earlier by such person from the depositor is remaining unpaid (whether repayment has fallen due or not), the amount or the aggregate amount remaining unpaid ; or

(c) the amount or the aggregate amount referred to in clause (a) together with the amount or the aggregate amount referred to in clause (b),

is[twenty] thousand rupees or more :

Provided that the provisions of this section shall not apply to any loan or deposit taken or accepted from, or any loan or deposit taken or accepted by,—

(a) Government ;

(b) any banking company, post office savings bank or co-operative bank ;

(d) any Government company⁶² as defined in section 617 of the Companies Act, 1956 (1 of 1956) ;

(e) such other institution, association or body or class of institutions, associations or bodies which the Central Government may, for reasons to be recorded in writing, notify⁶³ in this behalf in the Official Gazette :

⁶⁴[Provided further that the provisions of this section shall not apply to any loan or deposit where the person from whom the loan or deposit is taken or accepted and 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 under this Act.]

Explanation.—For the purposes of this section,—

⁶⁵[(i) “banking company” means a company to which the Banking Regulation Act, 1949 (10 of 1949), applies and includes any bank or banking institution referred to in section 51 of that Act ;]

(ii) “co-operative bank” shall have the meaning assigned to it in Part V of the Banking Regulation Act, 1949 (10 of 1949) ;

(iii) “loan or deposit” means loan or deposit of money.]

Menu

M.PORNIMA

CA Shailesh Ghase. ACA,B.com

Amir

Leave a Reply

Recent Threads

Related Threads

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA