Amit Jain
(Proprietor )
(537 Points)
Replied 16 October 2019
Suresh Thiyagarajan
(Student)
(3986 Points)
Replied 16 October 2019
1. First with respect to sec 269SS which deals with loan or advance or any sum of money which is accepted through cash.
2. If the amount is transferred to the firm's partners account then such loan or advance will not be covered u/s 269SS. Since it is merely a book entry and sec 269SS only deals with assessee's acceptance to loans or advances in cash exceeding Rs. 20,000.
3. So the above transaction shall not be reported.
4. Now, with respect to repayment of a loan to retiring partner. Sec 269ST deals with the receipt of the amount in cash in excess of Rs. 2 lakhs in a day for a single transaction in a day. This also deals with the receipt in cash. This also will not be covered u/s 269ST.
5. Either of your two transactions needed to be reported in form 3CD.
Please correct me if the above solution has an alternative view.
Amit Jain
(Proprietor )
(537 Points)
Replied 16 October 2019
Kapadia Pravin
(17259 Points)
Replied 19 October 2019
CAclubindia
