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Provision of section 269t

Tax queries 1533 views 10 replies

the company had taken a unsecured loan of2500000 from two individual but during current year they have been issued shares of the company to set off loan at face value. does this attract provision of section 269t or not? suggest

Replies (10)

IN MY OPINION AS THERE IS NO TRANSSACTION IN CASH AND ISSUING SHARES IS AS GOOD AS REPAYING LONAS TAKEN . YES IF THE LOANS ARE TAKEN IN CASH IT WILL HIT 269SS IN THE YEAR OF TAKING THE LOAN

BUT HERE I DONT THINK SO IT WILL ATTRACT 269T

i am agree with mr nimit if loan is given under cash then attact 269 t

agree with mr. NIMIT

In this case debt is converted into shares means there is no repayment of debt.Sec 269T will apply only in case od repayment not in case of conversion.Moreover the section was enacted in order to avoid cash transactions.So i firmly opine that in this case Sec 269T is not applicable.

Sec 269ss will be applicable if  the loan is taken in cash. 269t will not applicable as repayment is in other than cash.

No, section 269T wont be attracted

269T will be applicable if there is repayment of loan. In this case loan is only converted but repaid so 269T would not applicable.

Agreed wit wat Kumar sir says.

none of the sections would be applicable as no cash element is involved....

Originally posted by : Kumar Babu.G

In this case debt is converted into shares means there is no repayment of debt.Sec 269T will apply only in case od repayment not in case of conversion.Moreover the section was enacted in order to avoid cash transactions.So i firmly opine that in this case Sec 269T is not applicable.

 Correct.


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