What is 269SS of Income Tax Act?
As per Section 269SS, any deposit or loan or any specific amount should not be accepted or taken from any person other than by an account payee bank draft, account payee cheque, or through electronic clearing system via bank account, if: The amount of deposit or loan or specified sum is Rs. 20, 000 or more.
What is the limit specified in Section 269SS?
Rs 20,000
Section 269SS is not violated as the amount is not more than Rs 20,000 from one person.
What is Section 269SS and 269T?
Section 269SS and 269T of Income Tax Act,1961 been explained in the Article. Section 269SS and 269T deals with restrictions on taking Cash Loan of Rs. 20000 of more than and its repayment in cash.
What is the difference between Section 269SS and 269ST?
Except for the transactions referred to in Section 269SS and other receipts as exempted by Central Government by notification, Section 269ST of the Act shall apply to every receipt whether taxable or tax free, whether capital or revenue.
When was 269SS amended?
of April, 2015
68. In section 269SS of the Income-tax Act, in the opening portion, after the words “cheque or account payee bank draft”, the words “or use of electronic clearing system through a bank account” shall be inserted with effect from the 1st day of April, 2015.
Is NBFC covered under 269SS?
On March 9, 2017, RBI announced the inclusion of the section 69SS and 269T to NBFCs. These sections were incorporated with an end goal to control the illegal cash procurement via falsified cash transactions.
Is 269SS applicable to NBFC?
Can we accept cash more than 10000?
To limit the usage of cash in high-value transactions, the government, under Section 269ST, prohibits anyone from accepting cash worth more than ₹ 2 lakh. This means that in a single day, an individual cannot accept more than ₹ 2 lakh in cash even from close relatives.
How much cash can be paid in a day?
Section 269ST of the Income Tax Act provides that no person can receive an amount of INR 2 Lakhs or more in cash: In aggregate from a person in a day; In respect of a single transaction; or. In respect of transactions relating to one event or occasion from a person.
Can NBFC give cash loan?
Sections 269SS and 269T for NBFCs RBI incorporated the new provisions in para 104 and 117. This basically means that NBFCs cannot disburse more than ₹20,000 in cash against gold loans. NBFCs will have to do the clearance via cheques.
How much cash sale is allowed?
Cash Transaction Limit – Section 269ST Section 269ST imposed restriction on a cash transaction and limited it to Rs. 2 Lakhs per day. Section 269ST states that no person shall receive an amount of Rs 2 Lakh or more: In aggregate from a person in a day; or.