Are Staff advances within the scope of Sec-269SS & 269T ?
9 Replies
CA Ankur Goel
(sr. executive)
(133 Points)
Replied 16 January 2012
Yes, Staff's advance also covers under Sec 269SS & 269T
jean
(article assistant)
(113 Points)
Replied 16 January 2012
as i have gone through sec 269ss & 269T, i found the limit of 20000 covers the loans and advances taken(accepted from others) or deposited & repayment of loan and advances respectively...
my question is that is there any provisions in income tax restricting/ probhiting giving loan to others above 20000....
eg the ltd co has given 25000 advance to its staff against salary..
CA Neil Ganatra
(Partner - Gautam Joshi & Co.)
(871 Points)
Replied 16 January 2012
Section 269 SS & 269T are applicable only when loan or deposit is taken/accepted by the company. It is not applicable in the case loan is given or staff advance.
CA PARAS BAFNA
(Practising CA )
(33428 Points)
Replied 16 January 2012
. He can not accept loan in cash
as the Staff is also a person
and these sections applies to him also.
CA Neil Ganatra
(Partner - Gautam Joshi & Co.)
(871 Points)
Replied 16 January 2012
if the advance is taken from staff members and not given then in that case Sec 269 SS & T will be applicable
CA PARAS BAFNA
(Practising CA )
(33428 Points)
Replied 16 January 2012
The probable replies-
Advance is taken from Staff members is true
then it is also true that advance has been given by the staff members.
ADVANCE FROM STAFF IS GENERALLY NOT TAKEN. BUT SOME TIMES POOR EMPLOYER ACCEPTS ADVANCES FROM RICH EMPLOYEES. SECTION 269SS HAS TO BE FOLLOWED BY THE EMPLOYER.
Advance is taken from Staff members AND NOT GIVEN....back to the employee.
It implies that ...the employer's track record has become bad.
The employee should start to worry about his salary and in spite of thinking about 269ss , 269 t,
he should start to search a new employer.
Souvik Kumar Ghosh
(CA Final)
(1368 Points)
Replied 17 January 2012
What about advancesmade by the company to its staff for work purpose. will it fall within the ambit of Sec-269SS & 269T?
GULRAJ AILANI
(CA)
(234 Points)
Replied 03 April 2012
No the Above case will not fall under 269ss & 269T
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