What is SEC 269SS?
What is Section 269SS? As per Section 269SS, any deposit or loan or any specific amount should not be accepted or taken from any person other than by an account payee bank draft, account payee cheque, or through electronic clearing system via bank account, if: 7, 000, and deposit of Rs. 6, 000 from his friend Anand.
What is Section 269SS and 269ST?
Sections 269SS and 269T have been discussed in this article and this deals with cash payment and repayment of loans and deposits. Both the sections were introduced to curb the black money. False cash transactions give birth to unaccounted money which in turn increases tax evasion.
What is Section 269T of Income Tax Act?
(1) No company (including a banking company), co- operative society or firm shall repay to any person any deposit other- wise than by an account payee cheque or account payee bank draft where the amount of the deposit, or where the amount of the deposit is to be repaid together with any interest, the aggregate of the …
Is loan taken from NBFC covered under 269SS?
Section 269SS states that no person, in any case, can take cash loan another person if the amount exceeds the figure of Rs. 20,000.
What is specified accepted us 269SS?
“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.
How much loan can I take cash?
Under the Income Tax Act, loans of more than Rs 20,000, even from family members, cannot be taken in cash or bearer cheque. Breach of this provision (269SS) of the Act attracts a penalty that matches the loan amount under section 271D.
When was 269SS introduced?
Section 269SS in The Income- Tax Act, 1995. 2. Inserted by the Finance Act, 1984, w. e. f. 1- 4- 1984.
When was 269SS amended?
2015
The Finance Act, 2015 amended Section 269SS and Section 269T to include transactions in immovable property in order to curb black money circulation.
Can I repay my home loan in cash?
You can repay your loan amount to any HFC (Housing finance company) or NBFC (Non-banking finance company) in cash provided each loan instalment is less than Rs 2 lakh. The government introduced a new section 269ST. Section 269ST was introduced by the government to curb the black money and tax fraud in the economy.
Can I deposit cash in my home loan account?
In a relief to lakhs of homebuyers, the income tax department has said one can pay the entire loan amount in cash to any housing finance company (HFC) or non banking finance company (NBFC) in case every instalment is less than Rs 2 Lakh.
Can I repay car loan in cash?
The finance ministry issued a circular clarifying that the prohibition of cash payment would only apply to repayment of a single loan instalment in cash. As per the new income tax rule introduced in the last budget, cash payments/receipts of or over Rs 2 lakh are illegal and will attract penalty.