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Charitable trust--cash borrowals exceeding rs.20,000/--whether 269ss is violated. (Taxation)

This query is : Resolved

Author : P.Parthasarathi

PRO CHAT CALL

Posted On 21 August 2012 at 18:21

A charitable trust registered u/s 12A has made some cash borrowals in excess of the limit of 20K prescribed in section 269ss by some voluntary public as temporary loans just to meet the needs of the charitable institutions run by it before the grants were received. Whether penalty u/s 271D attracts in such case. Kindly mention if any case laws are available on this issue.

Expert : M V Gupta

PRO CHAT CALL

Posted On 22 August 2012 at 19:27

You have not mentioned the name of the Act.

Author : P.Parthasarathi

PRO CHAT CALL

Posted On 22 August 2012 at 21:00

I am sorry it is under the Income-tax Act.

Expert : M V Gupta

PRO CHAT CALL

Posted On 23 August 2012 at 12:40

In terms of Section 269SS your Trust is not expected to receive any loan or deposit in excess of Rs.20,000/- from a person except by way of an account payee cheque. If any loan extended to your trust exceed the above amount and was not given by cheque, then only your Trust be liable to penalty under section 271D of the IT Act.

Author : P.Parthasarathi

PRO CHAT CALL

Posted On 23 August 2012 at 16:46

Thank you very much Sir for the kind clarification.