269ss and 269t

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 April 2018 Dears,

In the Business of Rent income of Party Plot to various Party.

The Assessee accept the Deposit/Booking Advance more then 20K and after that adjusted with the final Bill amount.
Ex.
Advance Received Rs 35000.00 by Cash
Bill Amount Rs. 60000.00
and final Amount Received Rs 25.000 by cash

Does is the Section 269SS ro 269T of income Tax act.

Expert advice highly appreciated.

Thanks in Advances

Expert : Anonymous

Expert : Anonymous (Expert)

06 April 2018 Not applicable to Receiver's hand. But, it's atracted to tenant's hand...

Querist : Anonymous

Querist : Anonymous (Querist)

30 April 2018 Sorry for late question

Means there is no violation of Section 269SS and 269T and assessee can accept the Cash amount more then 20K and after that adjust with final bill amount.

If Final bill amount excess the advance then assessee can accept the rest amount by Cash and if final bill amount less then advance then assessee will refund the rest amount by Cash

Is this my understand is right sir.?

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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06 July 2024 Yes, the transactions you described fall under the purview of Section 269SS and Section 269T of the Income Tax Act, 1961. Here’s how these sections apply to your scenario:

### Section 269SS:
Section 269SS deals with acceptance of loans or deposits in certain cases. According to this section:

- **Applicability**: It applies when any person (including an assessee) receives from any other person any sum of money, whether by way of loan or deposit, if the amount received exceeds Rs. 20,000.
- **Mode of Receipt**: It specifies that such receipts must be through account payee cheque/draft/electronic clearing system (ECS) or through other electronic modes as prescribed, but not in cash.

### Section 269T:
Section 269T deals with repayment of loans or deposits in cash. According to this section:

- **Applicability**: It applies when repayment of any loan or deposit, including the repayment of advance against income, is made in cash.
- **Restriction**: Any repayment exceeding Rs. 20,000 must not be made in cash but through prescribed modes like cheque/draft/ECS or other electronic modes.

### Application to Your Scenario:
Based on the details provided:

1. **Advance Received**: Rs. 35,000 by cash.
- This exceeds Rs. 20,000, hence it should have been received through a non-cash mode as per Section 269SS.

2. **Final Amount Received**: Rs. 25,000 by cash.
- This also exceeds Rs. 20,000 and should ideally have been received through a non-cash mode as per Section 269T.

### Consequences:
- **Non-Compliance**: If the advance or final amount received in cash exceeds Rs. 20,000 and does not comply with Sections 269SS and 269T, there could be consequences.
- **Penalty**: The Income Tax Act may impose penalties for non-compliance with these sections.

### Expert Advice:
It is advisable to ensure compliance with Sections 269SS and 269T to avoid any penalties or adverse implications. Transactions involving amounts exceeding Rs. 20,000 should be routed through non-cash modes as prescribed by law.