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INCOME TAX

M.Lokesh (Student) (95 Points)

09 February 2010

HELLO|||||||||||||

CAN ANYONE TELL ME THE PROVISIONS OF SEC.269SS WITH THE HELP OF AN EXAMPLE.

DOUBT :

ASSUME THAT I HAVE TO FINALISE THE ACCOUNTS FOR THE FY 08 - 09 FOR CHARITABLE TRUST REGISTERED U/S.12AA OF IT ACT.DURING THE FY 08 - 09 TRUST HAS RECEIVED PAYMENTS MORE THAN RS.20,000/-FROM TRUSTEES AS LOAN WHERE THE AMOUNT PAYABLE TO TRUSTEE WHICH WAS RECEIVED AS LOAN AS ON 31.03.08 IS RS.1,50,000/-.SO IS IT AN VIOLATION OF 269SS PROVISION WITH REGARD TO ACCEPTING AMOUNT FROM TRUSTEES ?

WHAT IS THE IMPLICATION IF THE AMOUNT RECEIVED DURING THE FY IS 1) BY CASH ?2) BY CHEQUE?

WHAT IS THE IMPLICATION IF RS.25,000/- IS RECIVED IN CHEQUE & RS.15,000/- IS RECEIVED IN CASH?

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1 Replies

Anumanchipalli Sathikonda (Tax Consultant) (1559 Points)
Replied 09 February 2010

Mr.Lokesh

Section 269SS starts with the words "No person"

The word "person" has been defined in section 2(31). Trust is an AOP (Association Of Persons).

Hence there is no exemption from the operation of the provisions of section 269SS for a Trust. The trust which has not complied the provisions of section 269SS has to face the consequences as laid down in section 271D.

Regarding the second part of your question

please go through clause (c) which reads as under

"the amount or the aggregate amount referred to in clause (a) together with the amount or the aggregate amount referred to in clause (b), is twenty thousand rupees or more:

Hope you have got the point.

Best Wishes

Sathikonda