No person shall take or accept from ant’ other person (herein referred to as the depositor),—
(i) any loan or
(ii) deposit or
(iii) 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, if,—
(a) the amount of such loan or deposit or specified sum or the aggregate amount of such loan, deposit and specified sum is 20,000 more; 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 is 20,000 or more; 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 20,000 or more,
The Finance (No. 2) Act, 2019 has amended section 269SS so as to include such other electronic mode as may be prescribed, in addition to the already existing permissible modes of receipt in the form of an account payee cheque drawn on a bank or an account payee bank draft or the electronic clearing system through a bank account.
1. For the purposes of section 269SS,—
(i) “loan or deposit” means loan or deposit of money;
(ii) “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.
2. The words “any specified sum” have been inserted by the Finance Act, 2015, w.e.f. 1.6.2015. 3. Prescribed electronic modes [Rule 6ABBA]
(a) Credit Card:
(b) Debit Card;
(c) Net Banking:
(d) IMPS (Immediate Payment Service);
(e) UPI (Unified Payment Interface);
(f) RTGS (Real Time Gross Settlement);
(g) NEFT (National Electronic Funds Transfer), and
(h) BHIM (Bharat Interface for Money) Aadhar Pay.
1. Section 269SS not to apply in the following cases [Provisos 1 and 2 to section 269SS]
1. The provisions of section 269SS shall not apply to any loan or deposit or specified sum taken or accepted from, or any loan or deposit or specified sun 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 section 2(45) of the Companies Act, 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:
2. Further 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—
(a) both having agricultural income, and
(b) neither of them has any income chargeable to tax under this Act.
[Section 271D] Consequence of contravention of the provisions of section 269SS:
If a person takes or accepts any loan or deposit or specified sum in contravention of the provisions of section 269SS, he shall be liable to pay, by way of penalty under section 271 D, a sum equal to the amount of the loan or deposit or specified sum so taken or accepted unless he can prove that there was reasonable cause for doing so. Any penalty imposable in the above case shall be imposed by the Joint Commissioner.