Section 269T

Hi,

Let us try to interpretate section,


Part of the Provision of 269T=
"No branch of a banking company or cooperative bank and no other company or cooperative
society and no firm or other person"


so this includes all the person and as per section 2 [31] "person" includes—

[i] an individual,

[ii] a Hindu undivided family,

[iii] a company,

[iv] a firm,

[v] an association of persons or a body of individuals, whether incorporated or not,

[vi] a local authority,


so now Whether Mr. P is not covered under tax audit is from reporting point of view but it does not mean that sec 269T is not applicable.


Continuing with remaining part Provisions of 269T
" shall repay any loan or deposit made with it otherwise than
by an account payee cheque or account payee draft drawn in the name of the person who has
made the loan or deposit if-

(a) The amount of the loan or deposit together with interest payable thereon is Rs.20,000 or
more or
(b) The aggregate amount of the loan or deposits held by such person with the branch of a
banking company or cooperative bank of other company or cooperative society or firm or other
person, either in his own name or jointly with any other person on the date of such repayment
together with interest if any payable on such loan or deposit is Rs.20,000/- or more.

nothing contained in this section shall apply to repayment of any loan or deposit taken or
accepted from :-
(i) Government
(ii) Any banking company, post office savings bank or co-operative bank
(iii) Any corporation established by a central, state or provincial act
(iv) Any government company as defined in section 617 of the companies act 1956.

Continued:-

As p.a. repayment is more than 20,000/- and considering above provision it is suggested to pay other than mode of cash in order to make proper compliance.

However you are always welcome to rectify me.

Thank you.

Section 269T is squarely applicable in this case. It is irrelevant whether Mr P is cover under tax audit or not.

Very Good Explanation Mr. Karan Thakkar

Thank you Mr. Raja.

Thank you Mr. Raja.