Amendment of section 269T
67. In section 269T of the Income-tax Act, with effect from the 1st day of June, 2015,-
(A) in the opening portion-
(a) after the words “repay any loan or deposit made with it”, the words “or any specified advance received by it” shall be inserted;
(b) after the words “made the loan or deposit”, the words “or paid the specified advance,” shall be inserted;
(B) in clause (a), after the words “loan or deposit”, the words “or specified advance” shall be inserted;
(C) in clause (b), the word “or” shall be inserted at the end;
(D) after clause (b) and before the long line, the following clause shall be inserted, namely:-
“(c) the aggregate amount of the specified advances received by such 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 specified advances,”;
(E) in the second proviso, after the words “any loan or deposit”, the words “or specified advance” shall be inserted;
(F) in the Explanation, after clause (iii), the following clause shall be inserted, namely:-
‘(iv) “specified advance” means any sum of money in the nature of advance, by whatever name called, in relation to transfer of an immovable property, whether or not the transfer takes place.
Notes on Clauses:
Clause 67 of the Bill seeks to amend section 269T of the Income-tax Act relating to mode of repayment of certain loans and deposits.
The existing provision contained in section 269T provides that any loan or deposit shall not be repaid, otherwise than by an account payee cheque or account payee bank draft or online transfer through a bank account, by the persons specified in the said section, if the amount of such loan or deposit is twenty thousand rupees or more.
It is proposed to amend the said section so as to provide that any loan or deposit or specified advance shall not be repaid, otherwise than by an account payee cheque or account payee bank draft or online transfer through a bank account, by the person specified in the said section, if the amount of such loan or deposit or specified advance is twenty thousand rupees or more.
It is further proposed to define “specified advance” as any sum of money received, as an advance or otherwise, in relation to transfer of an immovable property and becomes repayable if the negotiations do not result in transfer of such immovable property.
These amendments will take effect from 1st June, 2015.
