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LIC loan 269SS applicability

Lamiya Km (28 Points)

28 September 2019

is section 269SS applicable on loan taken from LIC?

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Kapadia Pravin (17264 Points)
Replied 29 September 2019

269SS not applicable

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Shabbeer Shaikh (7 Points)
Replied 29 September 2019

Yes 269SS Not applicable

Suresh Thiyagarajan (Student) (3986 Points)
Replied 29 September 2019

1. Sec 269SS deals with cash transactions in relation to loans or advance which cannot be made through cash if the sum involved exceeds Rs. 20,000 at any time during the year. The transaction should be through cheque, DD or any through the electronic clearing system.
2. Unlike in sec 269ST per person per day will not be the case in this section. Loans or advance from a single person at the point of time if it exceeds Rs. 20,000 at the time during the year sec 269SS will be attracted.
3. The penalty of an amount equal to the contravention will be levied on the person who is involved in the contravention.
4. The above section will not be applicable to Banking company, government company, corporation established by the CG and few other.
5. LIC is a company which is owned by the government and it will be covered under government company as defined under sec 2(45) of companies Act 2013.
6. Hence, a loan from LIC will not be covered under sec 269SS. And to observe LIC will not provide loan through cash. Please ensure the loan process before availing the loan.
Please correct me if the above solution has an alternative view.

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