Loan Repayment

This query is : Resolved

M.Sathish Kumar (Querist)
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05 April 2008 Hello Sir,

One of my client taken a loan from ICICI bank Rs 500000/- and they are under an obligation to repay the same on monthly basis.

Can You please explain the legal requirement as per section 269SS and 269T of Income Tax Act 1961?

Thanks in Advance!!!

CA Shailesh +91 9393926464

CA Shailesh +91 9393926464 (Expert)
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05 April 2008 sec 269SS & sec 269T provides that acceptance of loan and repayment thereof respectively in excess of rs. 20,000/- shall be made by way of account payee chq or account payee bank draft

Rakesh

Rakesh (Expert)
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07 April 2008 sec 269SS & sec 269T provides that acceptance of loan and repayment thereof respectively in excess of rs. 20,000/- shall be made by way of account payee chq or account payee bank draft
But in your case you have taken a lona from ICICI Bank and the same is not required to give detail u/s 269SS & 269 T

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R.V.RAO

R.V.RAO (Expert)
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07 April 2008 ICICI BANK WHILE GIVING THE LOAN TO YOUR CLIENT MUST HAVE OBVIOUSLY GIVEN A CREDIT TO HIS LOAN ACCOUNT OR ISSUED A CROSSED CQ. OR DRAFT TO YOUR CLIENT OR HIS DESIGNATED PARTY.SO THERE IS COMPLIANCE OF 269SS.
AS TO REPAYING LOAN UNDER SEC. 269T BY YOUR CLIENT , EVEN IF LOAN IS REPAID IN CASH BELOW RS. 20000 EACH TIME AND BANK DOES ACCEPT DEPOSIT INTO THE LOAN ACCOUNT.SO THERE IS NO ISSUE.
REPAYING ABOVE RS. 20000 BY CROSSED CQ. OR D.D WILL RESOLVE THE ISSUE OF COMPLIANCE UNDER SEC. 269T.
R.V.RAO