Dear pals,
Plz kindly let me know about the sec269SS immediately n What it deals with.?
CA Shailesh Ghase. ACA,B.com
(CA)
(114 Points)
Replied 31 December 2009
it is deal with transfer of funds in between related parties as described in AS 18. Sec. 269SS restrcits the transfer of funds in cash from one party to another without any specific business transactions.
Amir
(Learner)
(4016 Points)
Replied 31 December 2009
I DO NOT AGREE WITH Mr. SHAILESH, Since Sec 269 SS is applicable:-
1) ONLY IN CASE OF ACCEPTANCE OF LOAN (OR AGGREGATE OF LOANS IN A FINANCIAL YEAR) IS rS. 20,000 OR MORE AND NOT IN THE CASE OF MERE TRANFER OF FUNDS.
2) IT IS APPLICABLE EVEN IF PARTIES ARE NOT RELATED (THERE IS NO SUCH CONDITION)
In short Sec 269 SS says THAT IF A PERSON ACCEPTS A LOAN(EVEN IN PARTS) EXCEEDING Rs. 20,000, OTHERWISE THEN BY AN ACCOUNT PAYEE CHEQUE/DRAFT THEN THERE SHALL BE LEVEID A PENALTY EQUAL TO 100% OF SUCH LOAN..
BARE TEXT OF SEC 269 SS IS PRODUCED BELOW:-
[Mode of taking or accepting certain loans and deposits.
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