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Section 269ss and section 269t

B (Engin) (205 Points)

11 November 2016

Does section 269ss and 269T applies if we pay cash to relatives of amount more than Rs. 50000? Is it that cash transaction between relatives are allowed and section 269ss and 269T are not applicable for this?

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21 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177267 Points)
Replied 11 November 2016

If its gift, the section is not applicable.

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B (Engin) (205 Points)
Replied 14 November 2016

Can any contract be made where cash is paid by gift and it will be again have to be refunded by the relative whi is taking it?

Where in section 269ss and 269T is written that gift to relatives is exempt of section 269SS and 269T?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177267 Points)
Replied 14 November 2016

"Where in section 269ss and 269T is written that gift to relatives is exempt of section 269SS and 269T?"

Can you show me where it is mentioned, that the section refers to GIFTS?

B (Engin) (205 Points)
Replied 14 November 2016

Section 269SS and 269T says for any transaction over Rs 20000 should not be by cash. So even a gift transaction by cash over Rs. 20000 is also forbidden. Please correct of there is wrong in it.

saurabh kumar (Tax Consultant) (348 Points)
Replied 14 November 2016

Sec 269 SS relates to loan or deposit or any specified sum as advance or otherwise in relation to transfer of immovable property whether it has been transferred or not

while Sec 269 T is related to repayment of loans/deposit/specified sum in relation to immovable property.

It is not applicable where gift has been given in cash between two relatives.Yes in case of loan between relatives it may be applicable.

Agree with Mr.Dhirajlal Rambhia

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B (Engin) (205 Points)
Replied 15 November 2016

Can any contract be made where cash is paid by gift and it will be again have to be refunded by the relative who is taking it?

If cash is wanted to be given to relative in such a way that relative after sometime shall redund the cash back, can a contract be made like this? Will this contract if can be made violate section 269SS and 269T.

B (Engin) (205 Points)
Replied 16 November 2016

Can anybody please reply to this?

saurabh kumar (Tax Consultant) (348 Points)
Replied 17 November 2016

Gift deed can be made conditional such that in case of happening of a particular event it can be cancelled but the condition to return it is treated as consideration that makes this contract not a gift but as interest free loan.(in that case sec 269ss /269 T may apply) You can make a gift to your relative without attracting provision of sec 269 ss or 269 T but returning provision should be removed.Futher for more info you can refer to the following case. (Appeal No. ITA No. 3966/MUM/2008 dated January 12, 2008)

B (Engin) (205 Points)
Replied 08 September 2017

Hello

Can anybody please provide a authenticate website or link where I can read the 269s and 269t sections of IT so that the link contains the authenticated document describing 269S and 269T?

Regards

B (Engin) (205 Points)
Replied 08 September 2017

Sec 269 SS relates to loan or deposit or any specified sum as advance or otherwise in relation to transfer of immovable property whether it has been transferred or not

Does it mean if any high value of money is given in cash in advance for a work to an immediate relative it does not violate 269 SS and 269 T?

Can you please elaborate more on what you mean by any specified sum as advance or otherwise in relation to transfer of immovable property whether it has been transferred or not? Do you want to mean that this sepecified sum as advance is only related to immovable property for 269 SS?

Thank you for the replies.

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177267 Points)
Replied 08 September 2017

incometaxindia.gov.in/Acts/Finance

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177267 Points)
Replied 08 September 2017

provisions-of-section-269ss-and-269t-under-income-tax-act-

B (Engin) (205 Points)
Replied 08 September 2017

Thank you for providing link for 269SS. Can you please provide the link for 269T?

B (Engin) (205 Points)
Replied 08 September 2017

The above link shows that 269 SS applies to Mode of taking or accepting certain loans, deposits and specified sum. In that case a cash of high value whether as gift or for any other purpose other than loan/deposit if given to a relative will be trated as specified sum and will be under 269 SS. Will not it be?