Repayment or acceptance by journal entry does not attract penalty under section 269ss or 269t. 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, 1961 the act vide finance act, 2017. No violation us 269ss loan accepted passing journal entries. Income tax act 1961 section 269t mode of repayment of.
Query on section 269ss of income tax act, 1961 income tax. Prescribing of certain electronic modes of payment under. Income tax act is used for determination of taxable income, tax liability and also provides procedure for assessment, appeal, penalties and prosecutions. Introduction and basic concepts of income tax act 1961. Section271e penalty for failure to comply with the provisions of section 269t. Validity of indian incometax act provision implementing beps. Section 94b was inserted into the indian income tax act pursuant to beps action 4, which is aimed at limiting base erosion involving interest deduction and other financial payments. For section 269ss of the incometax act, the following section shall be substituted with effect from the 1st day of june, 2015, namely.
In this article, we will discuss a recent judgment of kerala high court where the assessee a society who conducted finance business violated section 269ss of the income tax act, 9870310368 9958944009. In furtherance to the declared policy objective of the government to encourage digital economy and move towards a lesscash economy, a new provision namely section 269su was inserted in the income tax act 1961, vide the finance no. Section 269ss and 269t deals with restrictions on taking cash. Tax act 1961 provides that if a loan or deposit is accepted in contravention of the provisions of section 269ss, then a penalty equivalent. No person shall take or accept from any other person herein referred to as the depositor, any loan or deposit or any specified sum, otherwise than by an account payee cheque or account payee bank draft or use of electronic clearing system through a bank account. No person shall take or accept from any other person herein referred to as the depositor, any loan or deposit or any specified sum, otherwise than by an account payee cheque or account payee bank draft or use of electronic. Penalty for failure to comply with the provisions 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 income and assets and imposition of tax act, 2015 central boards of revenue act, 1963 charitable and religious trusts act, 1920 charitable endowments act, 1890. Section 269st, provides that no person shall receive an amount of 2,00,000 or more in cash or bearer cheque. Latest income tax act sections list has been provided for finance people. Income tax act 1961 section 269t citation 23792 bare act. In this video you can see that how much and when you can repay your loan for availing benefits under income tax.
In india income tax is governed by the income tax act 1961. Oct 19, 2019 in furtherance to the declared policy objective of the government to encourage digital economy and move towards a lesscash economy, a new provision namely section 269su was inserted in the incometax act 1961, vide the finance no. The law commission submitted its report in september 1958 in consultation with the ministry of law. Provisions of section 269ss and 269t under income tax act 1961. An act to consolidate and amend the law relating to incometax and supertax. 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 by way of penalty equal to the amount of the loan or deposit or specified sumso taken or accepted. The answers should be unique and in ones own words. The excellent download file is in the format of pdf. List of sections of income tax act 1961 download pdf. Cash that is paid to meet emergency situations also does not attract any penalty.
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 penalty equivalent to the amount of such loan or deposit, so taken or accepted, may be levied by the joint commissioner. 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 every person having turnover, sales or gross receipts, as the case may be, in business exceeds 50 crore rupees specified person during immediately preceding previous year shall mandatorily provide facilities for. An act to consolidate and amend the law relating to income tax and super tax. Brief study of section 269st of income tax act, 1961. All about the new section 269su of the income tax act, 1961. Shah in the recent times, the modi government has made attempts to curb black money through various schemes such as voluntary income disclosure scheme, demonetization and income disclosure scheme pradhan mantri garib kalyan yojana. Aug 10, 2018 section 269ss and 269t of income tax act, 1961 been explained in the article. Earlier, provisions under sections 269ss and 269t of the income tax act, 1961 were included in the act. Restrictions on cash receipt new section 269st of income tax act, 1961 and some issues links and references. Income tax act 1961 section 269t citation 23792 bare. Jul 22, 2010 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 penalty equivalent to the amount of such loan or deposit may be levied by the joint commissioner. Income tax provisions of section 269ss and section.
Every year finance act bring amendment to this act. Any genuine transaction made at the time of emergency does not levy penalty. May 30, 2019 download the list of sections of income tax act,1961 in pdf and excel format. Section page contents division one 111 income tax act, 1961 page u arrangement of sections i3 u text of the income tax act, 1961 as amended by the finance act, 2011 1.
Restrictions in the section 269st aims to limit the cash transactions for achieving the government mission to make india a cashless economy and to reduce the circulation of black money. After section 269ss of the income tax act, the following section shall be inserted, namely. The finance bill, 2017 has something new to propose and to insert a new section 269st in the indian it act, 1961 w. Incometax department under section 279 and there are sufficient. Restrictions on cash receipt new section 269st of income. Section 269ul and 269um of income tax act 1961 restrictions on registration, etc. Introduction and basic concept of income tax law times journal. Section 271d of income tax act 1961 provides that if a loan or deposit or specified sum is accepted in contravention of the provisions of section. Provisions of sections 40a3, 269ss and 269t of the income tax act, 1961 have been amended by the direct tax laws amendment act act no. Applicability of section 269ss of income tax act 1961.
Mode of taking or accepting certain loans, deposits and specified sum. Repayment or acceptance via journal entry is not considered as deposits or loans. Text of remaining provisions of allied acts referred to in income tax act 1. No violation us 269ssloan accepted passing journal entries. For section 269ss of the income tax act, the following section shall be substituted with effect from the 1st day of june, 2015, namely. No person shall receive an amount of two lakh rupees or more a in aggregate from a person in a day.
Jul 04, 2017 section 269st incometax act, 1961 fa, 2017 section 269st incometax act 1961 inserted by the finance act, 2017, w. Income tax act 1961 complete act citation 530 bare. In chapter xxb of the income tax act, a in the heading, for the words mode of repayment, the words mode of acceptance, payment or repayment shall be substituted. Section 269st was introduced by finance act, 2017 in income tax act, 1961 by the central government in order to curb the tax evasion, regulation and circulation of black money. 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. At present, this law is governed by the act of 1961 which is commonly known as income tax act, 1961 which came into force on and from 1st april 1962. Section 269ss and 269t of income tax act, 1961 been explained in the article. Analysis of section 269st of income tax act restrictions on. 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 every person having turnover, sales or gross receipts, as the case may be, in business exceeds 50 crore rupees specified person during immediately preceding previous year shall mandatorily provide facilities for accepting. Section 269ss 269t of income tax act mode of taking or. Rebate of incometax in case of individuals of sixtyfive years or above omitted. When the loan is accepted by acknowledgement of debt by passing journal entries in the books of accounts it cannot be considered as acceptance of loan in violation of the provisions of section 269ss of the act, consequently, no penalty can be levied us 271d of the act. The minimum length of the answer has to be 100 words or more.
Students taking ca intermediate ca ipcc exams or students preparing for taxation will find the file very useful. Provided that if any liability for any tax or any other sum remaining payable under this act, the wealth tax act, 1957 27 of 1957, the gift tax act, 1958 18 of 1958, the estate duty act, 1953 34 of 1953, or the companies profits surtax act, 1964 7 of 1964, by any person entitled to the consideration payable under section 269uf, the. Section 94b1 of the indian income tax act provides that where an indian company, or a permanent. On the facts of the case i am of the opinion that there is reasonable cause, even if there is failure to. 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. No person shall take or accept from any other person herein referred to as the depositor, any loan or deposit or any specified sum, otherwise than. Provisions of section 269ss and 269t under income tax act. No person shall receive an amount of two lakh rupees or more. Most of the transactions in india are done in cash specially real estate transactions as a tactic to evade the income tax, as cash transactions are difficult to track. Conversion of loan into equity as part restructuring is a. Nov 25, 2019 in order to achieve the mission of the government to move towards a less cash economy a new section 269 su has come into force from 1112019. Payment or repayment in certain cases to counteract evasion of tax section 269ss. Section 269ss and 269t of income tax act 1961 mode of taking or accepting certain loans, deposits and specified sum, mode of repayment of certain loans or deposits are defined under section 269ss and 269t of income tax act 1961.
Clarification on newly inserted section 269su of income. Chapter iv sections 1459 of income tax act, 1961 deals with provisions related to computation of total income. Penalty for breach of section 269ss of the income tax act. Such other persons or class of persons or receipts, which the government may, by notification official gazette, specify. Insertion of new section 269ss income tax department. However, the term immovable property has not been defined in the amendment for the purpose of the income tax act. This appeal filed by the assessee is directed against the order of learned commissionerappeals, jalpaiguri dated 1622018, whereby he confirmed the penalty of rs. Therefore, this kind of payment does not attract any kind of penalty under section 269ss or section 269t of the income tax act, 1961. Be it enacted by parliament in the twelfth year of the republic of india as follows. Section 269ul of income tax act restrictions on registration. Section 269ss and 269t of income tax act,1961 been explained in the article.
A division bench of the kolkata income tax appellate tribunal itat, last week held that cash transactions between husband and wife would not attract section 269ss of the income tax act, 1961. Income tax act rules list 2019 has been provided for tax payers which includes revised and newly added tax rules. Section 269ss, income tax act, 1961 2014 chapter xxb requirement as to mode of acceptance, payment or repayment in certain cases to counteract evasion of tax in order to curb generation of black money by way of dealing in cash in immovable property transactions it is proposed to amend s. After section 269ss of the income tax act, the following section shall be inserted, namely no person shall receive an amount of two lakh rupees or more b in respect of a single. Section 269ss of income tax act mode of taking or accepting certain loans, deposits and specified sum section 269ss. Applicability of section 269ss and 269t indian tax updates. Loans and deposits us 269ss and section 269t detailed guide. Section80qqa deduction in respect of professional income of authors of text books in indian languages section80qqb deduction in respect of royalty income, etc.
Insertion of new section 269st income tax department. Apr 05, 2017 section 269st of the incometax act, 1961 1. Section 269ss of income tax act mode of taking or accepting certain loans. Section 269ss not applicable to transactions between relatives. It is proposed to provide that if a person receives any sum in contravention of the provisions of section 269st, he shall be liable to pay, by way of penalty, a sum equal to the amount of such receipt. 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 penalty equivalent to the amount of such loan or deposit may be levied by the joint commissioner. Summary of sections income tax act 1961 is available for download at the excellent download file is in the format of pdf. Summary of section 194ib incometax act 1961 section 194ib of income tax act inserted by the finance act, 2017, w. Given income tax act sections list includes revised, omitted and newly added tax rules. Aug 06, 2015 section 269ss, income tax act, 1961 2014 chapter xxb requirement as to mode of acceptance, payment or repayment in certain cases to counteract evasion of tax in order to curb generation of black money by way of dealing in cash in immovable property transactions it is proposed to amend s. Jun 01, 2017 section 194ib income tax act, 1961 fa, 2018. Penalty for failure to comply with the provisions of section 269ss. After section 269ss of the incometax act, the following section shall be inserted, namely. Analysis of section 269st of the incometax act, 1961 ca nemish j.
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