Income tax section 269ss
yash007
(Querist) 10 June 2013
This query is : Resolved
If i accepted cash as a unsecured loan of rs 19000 on 2/5/12 and another on 1/6/12 of rs 19000 and repaid the same on 1/8/12 rs 19000 by cheque and 25/8/12 rs 19000 then is hit by section 269SS ? tax audit specifically states whether it is obtained by way other wise than account payee cheque. ? please help
Rajendra K Goyal
(Expert) 11 June 2013
The section 269SS referred as under clarify full situation,please refer (c):
Section 269SS
No Person shall, take or accept from any other person (herein after called “depositor)any loans or deposits otherwise than by an account payee cheque or account payee draft if:-
(a) The amount of such loan or the aggregate amount of such loan and deposit, is Rs.20,000/- or more, or
(b) On the date of taking or accepting such loan or deposit, any loan or deposit accepted earlier by such person from the depositor is remaining unpaid is Rs.20,000/- or more
(c) The aggregate of the amount of loan or deposit to be taken and the amount of loan or deposit taken earlier which is outstanding on the date on which loan or deposit is to be taken is Rs.20,000/- or more.
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,
(i) Government
(ii) Any banking company, post office saving bank or cooperative bank
(iii) Any corporation established by a central, state or provincial act.
(iv) Any government company
Provided further that 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 none of them has any income chargeable to tax under the income tax act.
V R SHROFF
(Expert) 11 June 2013
IMAGINARY,
ASK REAL PROBLEM !!
All Cheque bounce cases gave friendly loan in cash of above 20,000 by CASH!!
COULD ANY ACCUSED of 138 N.I. ACT acquitted ONLY as it was a illegal transaction in violation of sec 296 I tax??
