Regarding RTGS and NEFT
Kirti Tulsyan
Kirti Tulsyan
B.Com.,ACA,CS
P.D.Rungta & Co.
Chartered Accountants
21, Hement Basu Sarani, 3rd Floor , Room .No.317
Kolkata-700 001,West Bengal, India
Branches :
Bhagalpur | Khatima | Mumbai | Ahemdabad | Bangalore | Delhi
Homepage : http://www.pdrungta.co.in/
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Kirti Tulsyan
Dear Members,
In one of my case, AO has argued that Section 269SS or section 269T has not defined anywhere that NEFT or RTGS has the same equivalency as account payee cheque or accounbt payee Demand Draft.
If you have any judgment or clarification or instruction on that, please provide me the same so that I can produce before him.
CAakgupta
Mobile 9830691095
Dear Mr Gupta,
I don't have any such case law right now on this particular point. But I know some of our professional colleagues who have got the assessment done in their favor on this point before the commissioner and joint commissioner. There is a very strong reason in this to justify that there is no violation of Sec 269SS and 269T where the payment is made through NEFT or RTGS. Please try to convince the AO telling him that there is no such violation rather it is more evident that the payment or receipt is not made in cash. I think the assessment will be in your favor.
Regards
Amit Chowdhury
Pawan Gupta & Co.
Chartered Accountants
22, B R B Basu Road
Kolkata - 700 001
Phone : ( 033 ) 3028 6661
REPLY 2
Ammendement in the Budget 2014
Mode of Acceptance or Repayment of Loans and Deposits [Section 269SS & 269T]
Sections 269SS and 269T are amended to allow acceptance/ repayment of loan and/ or deposit by use of electronic clearing system through a bank account in addition to account payee cheque or account payee bank draft. The monetary limit of Rs. 20,000, however, remains same.
These amendments will take effect from assessment year 2015-16.
Sanjay Patwari
REPLY 3
Vinod Kumar Goyal,F.C.A.P.G.D in A.D.R.
Senior Partner V.Goyal & Associates
EX-Chairman:A.N.M.I.,e.i.r.c.
Chairman:D.P.A.I.,e.i.r.c.
Hence a persuasive arguement explaining the concept of NEFT/RTGS should in my view convince a Bench which is prepared to listen.
regards
kalidas
sanjay kumar dey
means has been included in payment u/s 269SS & t.
Regards
CA Sanjay Dey
On Tue, 02 Sep 2014 11:05:44 +0530 Kirti Tulsyan wrote
>Dear Members,
In one of my case, AO has argued that Section 269SS or section 269T has not defined anywhere
that NEFT or RTGS has the same equivalency as account payee cheque or accounbt payee Demand
Draft.
If you have any judgment or clarification or instruction on that, please provide me the same so
that I can produce before him.
>
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Kirti Tulsyan
Dear Members,
In one of my case, AO has argued that Section 269SS or section 269T has not defined anywhere that NEFT or RTGS has the same equivalency as account payee cheque or accounbt payee Demand Draft.
If you have any judgment or clarification or instruction on that, please provide me the same so that I can produce before him.
CAakgupta
Mobile 9830691095
REPLY 1
Dear Mr Gupta,
I don't have any such case law right now on this particular point. But I know some of our professional colleagues who have got the assessment done in their favor on this point before the commissioner and joint commissioner. There is a very strong reason in this to justify that there is no violation of Sec 269SS and 269T where the payment is made through NEFT or RTGS. Please try to convince the AO telling him that there is no such violation rather it is more evident that the payment or receipt is not made in cash. I think the assessment will be in your favor.
Regards
Amit Chowdhury
Pawan Gupta & Co.
Chartered Accountants
22, B R B Basu Road
Kolkata - 700 001
Phone : ( 033 ) 3028 6661
REPLY 2
Ammendement in the Budget 2014
Mode of Acceptance or Repayment of Loans and Deposits [Section 269SS & 269T]
Sections 269SS and 269T are amended to allow acceptance/ repayment of loan and/ or deposit by use of electronic clearing system through a bank account in addition to account payee cheque or account payee bank draft. The monetary limit of Rs. 20,000, however, remains same.
These amendments will take effect from assessment year 2015-16.
Sanjay Patwari
NEW REPLY 1
RULE 6DD PROVIDES FOR FOLLOWING PAYMENTS AS NOT DISALLOWBLE U/S 40(A)(3) (c) where the payment is made by— (i) any letter of credit arrangements through a bank, (ii) a mail or telegraphic transfer through a bank; (iii) a book adjustment from any account in a bank to any other account in that or any other bank; (iv) a bill of exchange made payable only to a bank; (v) the use of electronic clearing system through a bank account; (vi) a credit card; (vii) a debit card. Explanation.—For the purposes of this clause and clause (g), the term "bank" means any bank, banking company or society referred to in sub-clauses (i) to (iv) of clause (a) and includes any bank [not being a banking company53g as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949)], whether incorporated or not, which is established outside India; YOU MAY PLEAD SAME FOR SECTION 269SS OR 269T
ECS, RTGS and NEFT etc. are now proposed to be allowed as permissible mode to accept or repay the deposit or loan specified under section 269SS and 269T respectively. The existing provisions contained in section 269SS of the Act, inter alia, provide that no person shall take from any other person any loan or deposit otherwise than by an account payee cheque or account payee bank draft, if the amount of such loan or deposit or aggregate of such loans or deposits is twenty thousand rupees or more. Similarly, the existing provisions of section 269T of the Act, inter alia, provide that no loan or deposit shall be repaid otherwise than by an account payee cheque or account payee bank draft, if the amount of such loan or deposit together with interest or the aggregate amount of such loans or deposits together with interest, if any payable thereon, is twenty thousand rupees or more. In the present times many banking transactions take place by way of internet banking facilities or by use of payment gateways. Accordingly, it is proposed to amend the provisions of the said sections 269SS and 269T so as to provide that any acceptance or repayment of any loan or deposit by use of electronic clearing system through a bank account shall not be prohibited under the said sections if the other conditions regarding the quantum etc. are satisfied. These amendments will take effect from 1st April, 2015 and will, accordingly, -
CA ANIL KUMAR SABOO
NEW REPLY 2
Dear Ashok, while making a payment through RTGS or NEFT we have to issue an account payee cheque favouring our bank a/c payees name. That cheque accompanies one requisition signed by us asking bank to deposit the amount electronically into the account of payee. It is implied that cheque issued by us ( account payee ofcourse) favouring bank to be subsequently deposited into payees bank account shall have to be treated as account payee cheque irrespective of the fact whether RTGS or NEFT is mentioned in the statue book.
Manak Chand Nahata