REQUIREMENT AS TO MODE OF 50[R2] [ACCEPTANCE,
PAYMENT OR] REPAYMENT IN CERTAIN
CASES TO COUNTERACT EVASION OF
TAX
50[R3] [Mode of taking or
accepting certain loans and deposits.
51[R4] 269SS. No person shall, after the 30th day of June, 1984, take or accept from any other person (hereafter in this section referred to as the depositor), any loan or deposit otherwise than by an account payee cheque or account payee bank draft if,—
(a) the amount of such loan or deposit or the aggregate amount of such loan and deposit ; or
(b) on the date of taking or accepting such loan or deposit, any loan or deposit 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 52[R5] [twenty] thousand rupees or more :
Provided that the provisions of this section shall not apply to any loan or deposit taken or accepted from, or any loan or deposit taken or accepted by,—
(a) 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 company53[R6] as defined in section 617 of the Companies Act, 1956 (1 of 1956) ;
(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, notify54[R7] in this behalf in the Official Gazette :
55[R8] [Provided further that the provisions of this section shall not apply to any loan or deposit where the person from whom the loan or deposit is taken or accepted and the person by whom the loan or deposit 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,—
56[R9] [(i) “banking company” means a company to which 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 meaning 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.]
57-63[R10] [Mode of repayment of certain loans or deposits.64[R11]
269T. No branch of a banking company or a co-operative bank and no other company or co-operative society and no firm or other person shall repay any loan or deposit made with it otherwise than by an account payee cheque or account payee bank draft drawn in the name of the person who has made the loan or deposit if—
(a) the
amount of the loan or deposit together with the interest, if any, payable
thereon, or
(b) the aggregate amount of the loans or deposits
held by such person with the branch of the banking company or co-operative bank
or, as the case may be, the other company or co-operative society or the firm,
or other person either in his own name or jointly with any other person on the
date of such repayment together with the interest, if any, payable on such
loans or deposits,is twenty thousand rupees or more:
Provided that
where the repayment is by a branch of a banking company or co-operative bank,
such repayment may also be made by crediting the amount of such loan or deposit
to the savings bank account or the current account (if any) with such branch of
the person to whom such loan or deposit has to be repaid.
Explanation.—For
the purposes of this section,–
(i) “banking
company” shall have the meaning assigned to it in clause (i) of the Explanation
to section 269SS;
(ii) “co-operative
bank” shall have the meaning assigned to it in Part V of the Banking Regulation
Act, 1949 (10 of 1949);
(iii) “loan or deposit” means any loan or deposit of
money which is repayable after notice or repayable after a period and, in the
case of a person other than a company, includes loan or deposit of any nature.]
65[R12] [Mode of repayment of Special Bearer Bonds, 1991.
269TT. Notwithstanding anything contained in any other law for the time being in force, 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 the person to whom such payment is to be made.]
[R1]Chapter XX-B inserted by
the Income-tax (Second Amendment) Act, 1981, w.e.f. 11-7-1981.
[R2]Inserted by the Finance Act, 1984, w.e.f. 1-4-1984.
[R3]Inserted by the Finance Act, 1984, w.e.f. 1-4-1984
[R5]Substituted for “ten” by
the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[R6]See also Circular
No. 522, dated 18-8-1988.
[R7]For notification specifying institution
[R8]Inserted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[R9]Clause (i) substituted for the following by the
Finance Act, 1985, w.e.f. 1-4-1986 :
‘(i) “banking company” shall have the meaning assigned to it in clause (a) of the Explanation to sub-section (8) of section 40A;’
[R10].Substituted
by the Finance Act, 2002, w.e.f. 1-6-2002. Prior to its
substitution, section 269T, as inserted by the Income-tax (Second Amendment)
Act, 1981, w.e.f. 11-7-1981 and later on amended by the Finance Act, 1984,
w.e.f. 1-4-1984, Finance Act, 1985, w.e.f. 1-4-1986 and Direct Tax Laws (Amendment)
Act, 1987, w.e.f. 1-4-1989, read as under :
‘269T. Mode of repayment of certain
deposits.—(1) No company (including a banking company), co-operative
society or firm shall repay to any person any deposit† otherwise than by an
account payee cheque or account payee bank draft where the amount of the
deposit, or where the amount of the deposit is to be repaid together with any
interest, the aggregate of the amount of the deposit and such interest, is ten
thousand rupees or more :
Provided that where the
repayment is by a banking company or
co-operative bank, such repayment may also be made by crediting the amount of
such deposit to the account (if any) with such company or bank of the person to
whom such deposit has to be repaid :
Provided further that nothing in
this sub-section shall apply to or in relation to the repayment of any deposit
on or after the date on which the Income-tax (Second Amendment) Act, 1981, receives
the assent of the President.
(2) No branch of a banking company
or a co-operative bank and no other company or co-operative society and no firm
or other person shall repay any deposit made with it otherwise than by an
account payee cheque or account payee bank draft drawn in the name of the
person who has made the deposit if—
(a) the
amount of the deposit together with interest, if any, payable thereon, or
(b) the
aggregate amount of the deposits held by such person with the branch of the
banking company or co-operative bank or, as the case may be, the other company or
co-operative society or the firm, either in his own name or jointly with any
other person on the date of such repayment together with the interest, if any,
payable on such deposits,
is twenty thousand rupees or more :
Provided that where the repayment
is by a branch of a banking company or co-operative bank, such repayment may
also be made by crediting the amount of such deposit to the savings bank
account or the current account (if any) with such branch of the person to whom
such deposit has to be repaid :
Provided further that nothing in
this sub-section shall apply to or in relation to the repayment of any deposit
before the date on which the Income-tax (Second Amendment) Act, 1981, receives
the assent of the President.
Explanation.—For the purposes of
this section,—
(i) “banking
company” shall have the meaning assigned to it in clause (i) of the Explanation
to section 269SS ;
(ia) “co-operative
bank” shall have the meaning assigned to it in Part V of the Banking
Regulation Act, 1949 (10 of 1949) ;
(ii) “deposit”
means any deposit of money which is repayable after notice or repayable after a
period and, in the case of a person other than a company, includes deposit of
any nature.’
*See also Circular No. 479, dated 16-1-1987, Circular No. 522, dated 18-8-1988 and Circular No. 556, dated 23-2-1990.
[R11]For the meaning of the term “deposit”
[R12]Inserted by the Income-tax (Second Amendment) Act, 1981, w.e.f. 19-9-1981.