Finance bill, 2015 provisions relating to direct taxes introduction the provisions of the finance bill, 2015 relating to direct taxes seek to amend the incometax act and finance. Mode of taking or accepting certain loans, deposits and specified sum, mode of repayment of certain loans or. Tax act 1961 provides that if a loan or deposit is accepted in contravention of the provisions of section 269ss, then a penalty equivalent. Indian government has taken many steps in direction of curbing black money. Restrict cash transactions which results disallowances of expenses or deduction under chapter via of. Provisions of section 269ss and 269t under income tax act. Section 269ss indicates that it applies to a transaction where a deposit or a loan is accepted by an assessee, otherwise than by an account payee cheque or an account payee draft. Loans and deposits us 269ss and section 269t detailed guide.
It is proposed to provide that if a person receives any sum in contravention of the. Mode of taking or accepting certain loans, deposits and specified sum. This has been done by bringing section 269st which bars persons receiving money in cash. Section 269st of the incometax act, 1961 slideshare. Income tax act 58 of 1962 south african government. Unaccounted cash representing concealed income, in many occasions, when found by the income tax authorities, the tax payers.
Income tax act 1961 complete act citation 530 bare. Prescribing of certain electronic modes of payment under section 269su of the income tax act, 1961lnvitation for application. Applicability of section 269ss and 269t of income tax act. Shah in the recent times, the modi government has made. Rebate of incometax in case of individuals of sixtyfive years or above omitted. For section 269ss of the incometax act, the following section shall be substituted with effect from the 1st day of june, 2015, namely. Section 269ss and 269t deals with restrictions on taking cash loan of rs. But, there is no provision in income tax regarding cash receipts before. Section 271d of income tax act 1961 provides that if a loan or deposit is accepted in contravention of the provisions of section 269ss then a. Transactions of the nature referred to in section 269ss of the incometax act are excluded from the scope of the said section.
One more step has been taken by the government towards digital and cash less economy by inserted a new provision namely section 269su in income tax act, 1961 which provides that. Faqs on section 269st of the incometax act, kanishka jain. Such provisions regulating the mode of accepting or taking loans or deposits and mode of repayment of certain loans and. What are the consequences of a violation of section 269ss and 269t of the income tax act. Clarifications in respect of section 269st of the income tax act, 1961 with a view to promote digital economy and create a disincentive against cash economy, a new section 269st has been inserted in the income tax act, 1961the act vide finance act, 2017. Latest income tax act sections list has been provided for finance people. These provisions were inserted by the finance act 2017 to. As per section 273b of income tax act no penalty shall be levied if the failure to comply with the provisions of section 269ss or 269t is due to some reasonable cause.
Income tax act 1961 section 269 to schedules, indian bare acts at, a website for indian laws and bareacts, legal advice and law documents in india. Section 269ss 269t of income tax act mode of taking or accepting. Clarification on newly inserted section 269su of income. Brief study of section 269st of income tax act, 1961. Implications of cash transactions under various provisions. Section 269ss and 269t of income tax act,1961 been explained in the article. Though section 269ss very well corresponds to the idea and existed since the. There are many provisions in the income tax act to curb tax evasion and flow of black money.
The effects of restrictions under provisions of income tax act are as follows. Section 269t of income tax act, 1961 section 269t of income tax act provides that any branch of a banking company or a cooperative bank and no other. Section 271d of income tax act 1961 provides that if a loan or deposit or specified sum is accepted. Section 269ss and 269t deal with the cash payment and repayment of loans. All about the new section 269su of the income tax act, 1961. Taxheal is a complete portal for latest updates and information on gst, income tax return, tax saving, gstr etc. Income tax authorities uncover hidden and unaccounted cash during raids. Section page contents division one 111 incometax act, 1961 page u arrangement of sections i3 u text of the incometax act, 1961 as amended by the finance act, 2011 1. Cash transactions under income tax act 1961 finance act 2017.
Section 269ss and 269t deals with restrictions on taking cash. Income tax provisions of section 269ss and section. Analysis of section 269st of the incometax act, 1961 ca nemish j. The own capital of a person may not be al provisions of section 269ss and 269t under income tax act finance is the important part and need of every business. List of sections of income tax act 1961 download pdf. Caknowledge ca, cs, cma, income tax, gst, banking 2019.
The finance act, 2015 amended section 269ss and section 269t to include transactions in immovable property in order to curb black money circulation. Section 269ss of the incometax act, 1961 requires that acceptance of any loan or deposit or any specified sum exceeding rupees twenty thousand may be made only by an. As per section 271d of the income tax act, 1961 if a person fails to comply with section 269ss then the joint commissioner shall charge a sum. According to section 273b of the income tax act, 1961, there is no penalty levied on an individual if heshe fails to obey the inclusions of section. All air prevention and control of pollution act, 1981 apprentices act, 1961 arbitration and conciliation act, 1996 banking cash transaction tax black money undisclosed foreign. Provisions of section 269ss and 269t under income tax act finance is the important part and need of every business. Section 269ss and 269t of income tax act, 1961 request and suggestions for the fm in brief transfer repayment of loan or deposit by way of transfer to registered. Upon violation of these sections, a penalty equal to the amount of such kind of receipt can be levied via the joint commissioner. Income tax provisions of section 269ss and section 269t. Jagdish t punjabi may 19, 2018 implications of cash transactions under various provisions of the incometax act 2 provisions dealing with cash transactions. However, the term immovable property has not been defined in the amendment for the purpose of the income tax act. Section 269ss and 269t has been introduced under the income tax act to mitigate evasion of tax through case transactions in.
Similarly, there are provisions under sections like 269ss269t regarding accepting and repayment of loans in cash. Any corporation established by a central, state or provincial act. For section 269ss of the income tax act, the following section shall be substituted with effect from the 1st day of june, 2015, namely. In order to curb generation of black money by way of dealings in cash in immovable property transactions section 269ss of. Now the question arises what can be a reasonable cause to justify the violation of the provisions of section 269ss and 269t. Section 269ss and 269t has been introduced under the income tax act to mitigate evasion of tax through case transactions in form of loans, advances or deposits. Further, it is proposed to make a consequential amendment in the payment and settlement systems act, 2007 so as to provide that no bank or system provider shall impose any charge. Section 269uad in the income tax act, 1995 d immovable property means i any land or any building or part of a building, and includes, where any land or any building or part of a. Ca vinay kawdia has examined the entire law applicable to sections 269st and 271da of the incometax act, 1961. Section 269ss and 269t deals with restrictions on taking cash loan of.
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