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Sec 269ss

RAJ KUMAR (FINANCE MANAGER) (1393 Points)

09 September 2013

HELLO FRIENDS, MY CLIENT HAS ALREADY DEPOSITOR OF RS. 20,00,000 IN THE LAST YEAR BALANCE SHEET BUT DURING THE CURRENT YEAR HE ONLY PROVIDES THE INTEREST ON THAT DEPOSITS BUT NO FRESH LOANS ARE ACCEPTED

PLS. TELL ME WHETHER IN FORM 3CD I HAVE TO REPORT THIS OR NOT.

I THINK IF IN THE PREVIOUS YEAR HE ACCEPTS NEW LOANS ONLY THAT INFORMATION IS TO BE GIVEN ONLY IN SEC 269SS.

PLS. TELL ME.

ITS VERY URGENT.

THANKS.

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3 Replies

Deepak Gupta (CA Student) (15922 Points)
Replied 09 September 2013

Originally posted by : RAJ KUMAR
	HELLO FRIENDS, MY CLIENT HAS ALREADY DEPOSITOR OF RS. 20,00,000 IN THE LAST YEAR BALANCE SHEET BUT DURING THE CURRENT YEAR HE ONLY PROVIDES THE INTEREST ON THAT DEPOSITS BUT NO FRESH LOANS ARE ACCEPTED PLS. TELL ME WHETHER IN FORM 3CD I HAVE TO REPORT THIS OR NOT. I THINK IF IN THE PREVIOUS YEAR HE ACCEPTS NEW LOANS ONLY THAT INFORMATION IS TO BE GIVEN ONLY IN SEC 269SS. PLS. TELL ME. ITS VERY URGENT. THANKS.

u/s 269SS, while giving figures of maximum amount outstanding at any time during the year, the opening balance in the loan account will have to be taken into consideration.
.
u/s 269T, interest amount shall be stated, if interest payment exceeds Rs. 20,000 (even if interest liability is discharged by transfer entry).

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RAJ KUMAR (FINANCE MANAGER) (1393 Points)
Replied 10 September 2013

IF INTEREST IS CREDITED TO THE DEPOSITORS BY JOURNAL ENTY

INT A/C

TO LOAN A/C

WHETHER IT IS TO BE REPORTED U/S 269SS OR REPORT UNDER SEC 40A 2 B

PLS. HELP.

Deepak Gupta (CA Student) (15922 Points)
Replied 10 September 2013

Originally posted by : RAJ KUMAR
	IF INTEREST IS CREDITED TO THE DEPOSITORS BY JOURNAL ENTY INT A/C TO LOAN A/C WHETHER IT IS TO BE REPORTED U/S 269SS OR REPORT UNDER SEC 40A 2 B PLS. HELP.

Interest accrued on the deposit and credited to the account periodically or otherwise partakes of the character of a deposit and as such becomes a deposit itself.

Circular: No. 479, dated 16-1-1987.
.
Hence, it shall be reported in Form 3CD u/s 269SS. It will constitute acceptance of deposits or loans otherwise than by account payee cheque. Therefore, mention the word ‘interest’ while reporting such entries.
.
If Interest is paid or credited to a person covered under list of specified persons in Section 40A(2)(b), then the same shall be reported in Clause 18 as well.