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section 269ss and 269T

ankit goyal (CA Final Student) (102 Points)

27 August 2008

this is with refrence to section 269SS and T

if i had taken a loan of 4.5 lacs and repay the party 5 lacs then whether i will be showing repayment as 4.5 lacs or 5 lacs.

if i had accepted security deposit for different reasons from the same party then whether i will be clubbing the amount or show it seperately(i have made the individual acconts seperate)

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6 Replies

jatinderkumar (Trainee) (32 Points)
Replied 27 August 2008

my dear it wil be the repayment of Rs.450000/-only nd not of Rs.500000.

Security Deposits accepted from the same party wd nt be clubbed togather..

security deposits wd be tratrd seperately

CA Rajesh S (Chartered Accountant) (1581 Points)
Replied 28 August 2008

Rs 4.5 lakhs only

CA Rajesh S (Chartered Accountant) (1581 Points)
Replied 28 August 2008

Rs 4.5 lakhs only

Yatesh Prakash Renuke (Service) (381 Points)
Replied 11 September 2009

Whether Security deposit is to be shown under sec 269SS??

Ratan Deep Saxena (Asstt Manager (Accounts & Finance)) (2998 Points)
Replied 11 September 2009

only repayment of loan is covered under section 269SS. Security deposit will be treated seprately.

Kumar (Manager) (22 Points)
Replied 23 December 2009

I have taken loans from various Parties by Cheque in Preceding Financial Year (2005-06). During the succeding year (2006-07) there were instances of Repayment by Cash exceeding Rs. 20,000/- & some Repayment BELOW Rs. 20,000/- also.

The ITO Claims that under 269 SS since there was an "Opening Balance" in the name of those Parties to whom Repayment was done by Cash (Whether Over or Below Rs. 20,000/-), Penalty is leviable on the "ENTIRE" Amount i.e. on the Opening Balance as well as on the Deposits accepted during the Year, whether by Cash or Cheque.

Is the ITO Right in doing so? Especially because ALL Opening Balances were Originally Accepted by Cheque & not cash. Also, Repayment was also by Cheque, for Example :

1. A had Loaned me Rs. 40,000/- by Cheque & Rs. 10,000/- by Cash in 2005-06. In 2006-07, I repaid him Rs. 40,000/- by Cheque & Rs. 10,000/- by Cash. The ITO says Penalty under 269 SS is Leviable on the ENTIRE Rs. 50,000/- which was the Opening Balance for 2006-07.

2. B had Loaned me Rs. 5,00,000/- by Cheque in 2005-06. In 2006-07, he gave me Rs. 12,000/- by Cash which i repaid by Cash within that year itself. The ITO says Penalty is leviable on the Entire Rs. 5,00,000/- Opening Balance irrespective of the Fact that the Opening Balance Rs. 5,00,000/- was still the Closing Balance in 2006-07 (No Repayment either by Cash or Cheque other than the Rs. 12,000/- as mentioned above.

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