What is Section 269SS of Income Tax Act?
What is Section 269SS? 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.
What is maximum amount in 269SS?
Rs 20,000
Section 269SS is not violated as the amount is not more than Rs 20,000 from one person.
What is 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.
When was 269SS amended?
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.
What is the maximum cash payment limit?
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.
Is Section 269SS applicable to NBFC?
How much cash transaction is allowed in a day?
₹ 2 lakh
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.
Is 269SS applicable to NBFC?
What is the limit of cash receipt?
Income Tax Act restricts any person to receive an amount of two lakh rupees or more in cash, 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, under Section 269ST.
Can loan be repaid in cash?
Going by an income tax department circular issued yesterday, it appears that you can repay your entire loan amount to any HFC (Housing finance company) or NBFC (Non-banking finance company) in cash provided each instalment is less than Rs 2 lakh.