section 269ss of income tax act video conent.pptx

SECTION 269SS OF INCOME TAX ACT, 1961.

1. CHAPTER XX-B REQUIREMENT AS TO MODE OF ACCEPTANCE , PAYMENT OR REPAYMENT IN CERTAIN CASES TO COUNTERACT EVASION OF TAX MODE OF TAKING OR ACCEPTING CERTAIN LOANS , DEPOSITS AND SPECIFIED SUM. ***************************************************************** SECTION 269SS . No person shall take or accept from any other person (herein referred to as the depositor ), any loan or deposit or any specified sum, otherwise than by an account payee cheque or account payee bank draft or use of electronic clearing system through a bank account , if ,— ( a ) the amount of such loan or deposit or specified sum or the aggregate amount of such loan , deposit and specified sum; or ( b ) on the date of taking or accepting such loan or deposit or specified sum, any loan or deposit or specified sum 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(>=20,000) :

2. Provided that the provisions of this section shall not apply to any loan or deposit or specified sum taken or accepted from, or any loan or deposit or specified sum taken or accepted by,— ( a ) the Government; ( b ) any banking company, post office savings bank or co-operative bank; ( c ) any corporation established by a Central, State or Provincial Act; ( d ) any Government company as defined in clause ( 45 ) of section 2 of the Companies Act, 2013 (18 of 2013); ( 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, notify in this behalf in the Official Gazette: Provided further that the provisions of this section shall not apply to any loan or deposit or specified sum, where the person from whom the loan or deposit or specified sum is taken or accepted and the person by whom the loan or deposit or specified sum is taken or accepted, are both having agricultural income and neither of them has any income chargeable to tax under this Act. ‘ I n a single day ’ means all the transactions of the day from the same person shall be clubbed to verify the limit of Rs 20,000/-. The ‘ aggregate amount ’ means total money received on the day including earlier unpaid amount. “specified sum” means any sum of money receivable, whether as advance or otherwise, in relation to transfer of an immovable property, whether or not the transfer takes place .

3. SECTION 269SS(a) . No person shall take or accept from any other person (herein referred to as the depositor), any loan or deposit or any specified sum ( a ) the amount of such loan or deposit or specified sum or the aggregate amount of such loan , deposit and specified sum is twenty thousand rupees or more(>=20,000 ) : EXAMPLES1: EXAMPLE2: LAKHIT/ DEPOSITOR PRAGYA/ ACCEPTOR LOAN: Rs 8,000/- by CASH DEPOSIT: Rs 9,000/- b y CASH SPECIFIED SUM: Rs 8,000 /- by CASH The Total aggregate AMOUNT BY CASH IS =8,000 + 9,000 + 8,000 = 25,000/- Which SUM IS >20,000/- Violates the SECTION 269 SS(a). SECTION 269 SS with EXAMPLES. OPEN LAND/ HOUSE PROPERTY OWNER OF PROPERTY Specified sum1: Advance Rs 20,000/- BY CASH . Specified sum2: Advance Rs 25,00,000/- BY NET BANKING . Specified sum1= 20,000/- violates section 269 ss (a) [SELLER/ACCEPTOR] [BUYER/PAYER] IMMOVABLE PROPERTY TRANSACTION (Both the examples penalty equal to such amount U/S 271D)

4. SECTION 269SS CLAUSE (b ) . No person shall take or accept from any other person (herein referred to as the depositor), any loan or deposit or any specified sum ( b ) on the date of taking or accepting such loan or deposit or specified sum, any loan or deposit or specified sum 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; is twenty thousand rupees or more(>=20,000) : EXAMPLE1: ‘SECTION 269SS CLAUSE(B)’ Another loan LASYA taken. Then the total loan outstanding is Rs : 15,000/- + 10,000 = 25,000/- (Unpaid loan) + (Another loan)= (total loan). Which is >20,000/-,violation of SECTION 269 SS(B) and penalty U/S 271D was levied. *************************************************************************************************** SECTION 269SS CLAUSE(C) . No person shall take or accept from any other person (herein referred to as the depositor), any loan or deposit or any specified sum, 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(>=20,000) : SATHYA RAJ LASYA Accepted earlier loan Rs 15,000/- And unpaid. LOAN AMOUNT Rs 10,000/- DEPOSITOR ACCEPTOR

5. The specified modes of payment given in the section read with rule 6ABBA are: Account payee bank draft or Account payee cheque or Use of an electronic clearing system (‘ECS’) through a bank account Credit Card; Debit Card; Net Banking; IMPS (Immediate Payment Service); UPI (Unified Payment Interface); RTGS (Real Time Gross Settlement); NEFT (National Electronic Funds Transfer); and BHIM (Bharat Interface for Money) Aadhar Pay ; Certain judicial precedents which have held that section 269SS shall not apply to the under-mentioned cases: i . Loan transactions between husband and wife [Nabil Javed Vs ITO (ITAT Delhi)] ii. Cash transactions between close family members for offering help and support [Sri Nikhil Banik Mazumder Vs. JCIT (ITAT Kolkata)] iii. Transaction between relatives [ Snehalata Sitani Vs JCIT (ITAT Kolkata )] EXCEPTIONAL CASE : Receiving cash from relative during emergencies . Here intension should not be to evade the taxes. The loan transaction between son-in-law and father-in-law for a support and help was not a loan or deposit in stricter sense of section 269SS of the act and the same having been given only as a financial support, the relevant transaction did not fall in the ambit of section 269SS of the act.