Section 269SS of Income Tax Act "Mode of taking or accepting certain loans, deposits and specified sum"
269SS. 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 11[or
through such other electronic mode as may be prescribed],
if,-
(a) the amount of such loan or deposit or specified sum or
the aggregate amount of such loan, deposit and specified
sum; or
(b) on the date of taking or accepting such loan or
deposit or specified sum, any loan or deposit or specified
sum taken or accepted earlier by such person from the
depositor is remaining unpaid (whether repayment has fallen
due or not), the amount or the aggregate amount remaining
unpaid; or
(c) the amount or the aggregate amount referred to in clause
(a) together with the amount or the aggregate amount
referred to in clause (b),
is twenty thousand rupees or more:
Provided that the provisions of this section shall not apply
to any loan or deposit or specified sum taken or accepted
from, or any loan or deposit or specified sum taken or
accepted by,-
(a) the Government;
(b) any banking company, post office savings bank or
co-operative bank;
(c) any corporation established by a Central, State or
Provincial Act;
(d) any Government company as defined in clause (45) of
section 2 of the Companies Act, 2013 (18 of 2013);
(e) such other institution, association or body or class of
institutions, associations or bodies which the Central
Government may, for reasons to be recorded in writing,
notify in this behalf in the Official Gazette:
Provided further that the provisions of this section shall
not apply to any loan or deposit or specified sum, where the
person from whom the loan or deposit or specified sum is
taken or accepted and the person by whom the loan or deposit
or specified sum is taken or accepted, are both having
agricultural income and neither of them has any income
chargeable to tax under this Act.
Explanation.-For the purposes of this section,-
(i) "banking company" means a company to which the
provisions of the Banking Regulation Act, 1949 (10 of 1949)
applies and includes any bank or banking institution
referred to in section 51 of that Act;
(ii) "co-operative bank" shall have the same meaning as
assigned to it in Part V of the Banking Regulation Act, 1949
(10 of 1949) ;
(iii) "loan or deposit" means loan or deposit of money;
(iv) "specified sum" means any sum of money receivable,
whether as advance or otherwise, in relation to transfer of
an immovable property, whether or not the transfer takes
place.
269ST. No person shall receive an amount of two lakh
rupees or more-
(a) in aggregate from a person in a day; or
(b) in respect of a single transaction; or
(c) in respect of transactions relating to one event or
occasion from a person,
otherwise than by an account payee cheque or an account
payee bank draft or use of electronic clearing system
through a bank account 12[or through such other electronic
mode as may be prescribed]:
Provided that the provisions of this section shall not apply
to-
(i) any receipt by-
(a) Government;
(b) any banking company, post office savings bank or
co-operative bank;
(ii) transactions of the nature referred to in section
269SS;
(iii) such other persons or class of persons or receipts,
which the Central Government may, by notification in the
Official Gazette, specify.
Explanation.-For the purposes of this section,-
(a) "banking company" shall have the same meaning as
assigned to it in clause (i) of the Explanation to section
269SS;
(b) "co-operative bank" shall have the same meaning as
assigned to it in clause (ii) of the Explanation to section
269SS.