APPLICABILITY OF 269SS AND 269T ON NIDHI COMPANY, Income Tax

[Pushkar Gupta]

Dear Sir

We have started a NIDHI Company In Rajasthan, we are maintaining three type of deposit accounts namely RD, FD and Saving account from Member and also granting loan to Members. We have following query.

1. Now company has taken RD from member Range from ₹ 100 to ₹ 500 per day in cash. In accepting cash whether it can be default of sec 269ss. Please explain how can take RD from member. Bank is also denying fro making ECS of ₹ 100 daily for RD amount.
2. Is NIdhi company grant loan to member which is unsecured. Since has plan for micro finance which will be unsecured, it will be range from ₹ 10000 to ₹ 200000 .
3. Whether company can receive repayment in cash for Small loan account which are exceeding ₹ 20,000/- in a year. Is it default of sec 269SS and 269T.

Thanks in Advance.