What is 269 SS Section of Income tax Act?

Section 269SS of the Income Tax Act 1961 pertains to the prohibition of acceptance of certain cash loans deposits and advances. It states that any person shall not take or accept any loan deposit or specified sum of money exceeding Rs. 20000 in cash unless it is received through an authorized mode such as cheque demand draft electronic transfer or any other digital method. If a person receives such cash loans deposits or advances in violation of Section 269SS they may be liable to pay a penalty equal to the amount received in cash. The penalty will be enforced by the Income Tax Department. It is important to note that there are certain exemptions and exceptions provided under the Income Tax Act so it is advisable to consult a tax professional or refer to the specific provisions of the Act to understand the complete details and implications of Section 269SS.

What is 271 D Section of Income tax Act?

Section 271D of the Income Tax Act is a provision that deals with the penalty for failure to comply with the provisions related to acceptance of certain payments in modes other than cash. Let's delve into this provision in more detail.According to Section 271D if a person or entity receives a sum of Rs. 20000 or more in cash and they fail to receive it in any mode other than cash a penalty shall be levied. The penalty amount shall be equal to the sum received in cash.In simpler terms if someone receives a payment of Rs. 20000 or more in cash and they are required to accept it through a non-cash mode (such as cheque demand draft bank transfer etc but they knowingly accept it in cash they will be liable to pay a penalty equivalent to the amount received in cash. However it is important to note that if there is a reasonable cause for receiving the payment in cash the penalty may not be levied. The purpose of Section 271D is to promote electronic or non-cash transactions and discourage cash transactions as the government aims to reduce the circulation of unaccounted money and promote transparency in financial transactions. It is essential for individuals and entities to comply with the provisions of this section and ensure that payments above the specified limit are accepted through non-cash modes to avoid the imposition of penalties. Please note that tax laws and provisions can vary across jurisdictions and may be subject to amendments. It is always advisable to consult a qualified tax professional or refer to the relevant tax authorities for the most accurate and up-to-date information.

Be Careful While lending money (Hindi)

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