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income tax 269SS

student (WORKING) (757 Points)

27 July 2010

I faced a problen in one of the case;
suppose if plot of value 2 lac for which advance was given by me & my spouse jointly (30:70) but after when i applied fr registry society said that such property can be registered only in one person's name now how i transfer that 30% in my spouse a/c's. both of us b/s in 07-08 shows such proportion & now in 09-10 registry only in my spouse name now whether spouse can pay me those 30% in cash /bank or if paid in cash 269ss or 269t attracted on such loans or not b/c it is for plot

my spouse had also given me a loan in 1999 (cheque) bal o/s =2.5 lac whether i can set off loan pymt with this 30%

by passing JE LOan dr advance against propert Cr

pls reply its v urgent thanks in advance

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venkatraman shrinivas (Tax consultant/Tax Advocate In Practice.) (313 Points)
Replied 27 July 2010

From the factgs as furnished in your query, it is deduced that the cash payment, purportedly proposed to be made by your spouse is only in consideration of her share in the property that you propose to acquire. In such ciracumstasnmces, the payment cannot be regarded either as a loan or depositr witrhin the meaning of section 269SS of the Act.

Further, it is seen that the acquisition of the plot iis not in the process of any business operations, such as real estate. If that is so, even the other provisions of section 430A(3) (which provides for disallowance of anay business expenditure where cash payment is made in excess of 20,000) In this view of the matter, it can be safely concluded that there is no application of the provisions of section 269SS of the IT Act.