Know about Section 269T and Section 269TT
Section 269T: –
Background: – Section 269T is just alike to Section 269SS but with the exception that section 269SS was applicable on transaction involving taking or accepting of loan or deposit greater than Rs. 20,000 /- and section 269T will be applicable on transaction involving repayment of loan or deposit taken amounting to Rs. 20,000/- or more.
Applicability: – Section 269T will be applicable only when following persons shall repay any loan or deposit:-
- Branch of Banking Company, a cooperative bank
- Any Company
- Any cooperative Society
- A firm
- Any other person
However, in case if loan is been taken from the following person:-
- Any Banking Company, post office saving Bank or co-operative bank
- Any corporation established by a Central, State or Provincial Act.
- Any Government company.
- Or such other institution association or body or class of institutions, associations or bodies which the central government may notify.
Provision: – No person shall repay any loan or deposit made with it otherwise than by “Account payee cheque or Account payee bank draft drawn in the name of person who has made the loan or deposit, or by use of electronic system through a bank account” if following conditions are satisfied:-
- Repayment of loan or deposit, together with interest, is Rs. 20,000/- or more
- Aggregrate amount of loan or deposit ,taken either individually or jointly, outstanding on the date of repayment along with interest is Rs. 20,000/- or more
Section 269TT: –
Section 269TT is a very simple provision which states that the amount payable on redemption of Special Bearer Bonds, 1991 shall be paid only by an account payee cheque or account payee bank draft drawn in the name of person to whom such repayment is to be made.
Know About Section 269T and Section 269TT
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