Hello Everyone,
Please any one can explain me in detail regarding Sec. 269 SS and TT?
When it is applicable?
Please give your golden reply with a example.
I will be thankful to you.
14 Replies
Bhavin Bhadra
(Job)
(174 Points)
Replied 12 August 2010
Dear Hardik,
269ss and 269T are clauses of Tax audit and are applicable when loan is taken in excess of Rs.20000/- and for repayment of the said loan.
CA SURENDRA KUMAR RAKHECHA
(Practising CA at Surat)
(26263 Points)
Replied 13 August 2010
I appreciate the answer given by Bhavin Bhadra, Articled Clerk which is based on his practical experience. Articled clerks should try to give answer. If something wrong is (t)here ; it would be rectified here.
Sec. 269SS : Acceptance of loans of Rs.20,000 or more otherwise than account payee cheque or draft.
Sec. 269T : Repayment of loans of Rs.20,000 or more otherwise than account payee cheque or draft.
These provisions are applicable to all without only restrictions to tax audit cases.
In Tax audits; these are specifically to be reported.
Tutorials :
Once the amount of loan reaches or crosses Rs.20,000; no further loan should either be taken or repaid otherwise than by account payee cheque or bank draft.
For example; one can take loan of Rs.19,999/- in cash (Not Rs.20,000/-). The next amount he cannot take otherwise than the modes described above.
Similarly; if the amount of loan crosses Rs.19,999/- the repayment must be made only through account payee cheque or draft.
If one does not follow the provisions of these sections-
A PENALTY EQUAL TO THE AMOUNT OF THE LOAN IS LEVIABLE
by the Income-Tax Department.
Exception :
If loan is repaid in cash to the Bank, Govt., Govt. Co., and SMCs. etc.; then these provisions are not applicable.
Senthil Kumar
(Student)
(62 Points)
Replied 29 January 2011
Sir,
Provisions of sections 269SS and TT are applicable for Gold Loan..?
In gold loan repayment is it necessary to comply with such provision.?
Please advice.
CA SURENDRA KUMAR RAKHECHA
(Practising CA at Surat)
(26263 Points)
Replied 29 January 2011
| Originally posted by : Senthil Kumar | ||
 |
Sir, Provisions of sections 269SS and TT are applicable for Gold Loan..? In gold loan repayment is it necessary to comply with such provision.? Please advice. |
 |
The query is not clear. Do you mean GOLD taken as loan ?
CA PARAS BAFNA
(Practising CA )
(33428 Points)
Replied 30 January 2011
Gold loans means loans taken against Gold. The provisions of 269T are applicable to loan or deposit of any nature.
*
Gold Loan can be repaid in cash to a Bank - Second Proviso of Section 269T
*
Sometimes, the account is settled by selling the gold to the lender and balance amount is received/paid.
In my opinion, adjustment of existing loan is tantamount to repayment of loan.
In my personal view, it may be allowed in such cases where gold is a capital asset of the borrower
or there is no alternative available to THE BORROWER to repay the loan.
*
Expert opinions are required on this issue.
varun jain
(Employed)
(363 Points)
Replied 31 January 2011
In addition to Surender Sir's reply,
The MP High Court in the case of CIT Vs Indore Plastics Pvt Ltd (2003) 262 ITR 163, held that section 269SS lack application where receipt is neither a deposit nor a loan. Mere adjustment of amount which owed to a company will not fall within the meaning of section 269SS of the IT Act, 1961.
ketki
(CA)
(76 Points)
Replied 25 August 2011
Is sec 269T and 269SS apply to secured loan or unsecured loans?
CHIRAG DEEPAK GANATRA
(CA FINAL)
(1054 Points)
Replied 25 August 2011
69ss and 269T are clauses of Tax audit and are applicable when loan is taken in excess of Rs. 20000/- and for repayment of the said loan.
abhishek
(n.a)
(43 Points)
Replied 01 October 2012
Dear Members,
I need your advice on two issues
1. What is the consequences upon a person giving loan. Does a person would be liable to any penalty if he give loan forgetting the consequences being faced by the person accepting that loan.
2. Companies like muthooth finance give loan in HARD CASH against pledge of gold upto 10 Lakhs. How do these companies and the person taking loan escape the provision of Sec 269SS & 269T.
Thank You
Please reply
slgabhi @ gmail.com
RAHUL JAIN
(ARTICLE)
(21 Points)
Replied 08 October 2012
please anyone tell me,
where to show loan given to directors in our 3cd report ?.....
Manoj Chauhan
(Executive)
(385 Points)
Replied 11 December 2012
If deposit is accepted by way of book entries. For example, XYZ company accepts deposit from ABC company by debiting the current account of ABC company in the books of XYZ company. Is this contravention of Section 269SS? Please reply urgently.
sunny
(Audit Assisstant)
(24 Points)
Replied 19 September 2013
Dear All Friends
Can u tell me Loan & Advances is covered in which sec. (269ss or 269TT)
AKESH KUMAR JAIN
(MANAGER)
(26 Points)
Replied 12 December 2015
Dear Members, I need your advice on two issues 1. What is the consequences upon a person giving loan. Does a person would be liable to any penalty if he give loan forgetting the consequences being faced by the person accepting that loan. 2. Companies like muthooth finance give loan in HARD CASH against pledge of gold upto 10 Lakhs. How do these companies and the person taking loan escape the provision of Sec 269SS & 269T. Thank You
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