Clause-31(a) – Section 269SS

Clause-31(a) – Section 269SS

• As per Section 269SS, any deposit or loan or any specific amount should not be accepted from any person other than by an account payee bank draft, account payee cheque, or through an electronic clearing system via a bank account if:
• The deposit, loan, or specified sum is Rs. 20,000 or more.

The system captures the details in the following steps:

Step -1: Ledger Selection 

1. The system populates ledgers that are classified as “Unsecured Loans” - (a) Banks and Financial Institutions, (b) Directors, (c) Friends & Relatives & (d) Shareholders with transactions > Rs. 20,000
2. The system also lists to the user all ledgers that are present in AssureAI for the client to add to the report
3. Any ledger added in step -1 manually by the user in the first year will be saved and listed in the second year onward.
4. User can also provide details like Name of the Payee, PAN and Address, for each ledger which are not mandatory

Step -2: Report Completion 

The system scans all ledgers added in Step 1 and identifies transactions that may be reportable under Sections 269SS. The system considers not only the individual receipt amount but also factors such as:

1. Aggregate transactions with the same party on the same day.
2. Outstanding loan/deposit balances existing on the date of the transaction.
3. Transactions that may become reportable when considered together with the outstanding balance or other transactions.
4. For each reportable transaction, the system displays:
   • Transaction Amount – Receipt or repayment amount identified for reporting.
   • Was the Amount Squared Up? – Displays Yes if the ledger closing balance is zero; otherwise No.
   • Maximum Outstanding Amount – Highest outstanding credit balance in the ledger during the relevant period.
   • Accepted/Repaid by Cheque or Bank Draft? No for cash transactions. Yes for bank transactions.
   • Accepted/Repaid by an Account Payee Cheque or Account Payee Bank Draft? – For bank transactions, this value may be specified using the toggle provided by the user.

Note: Transactions may be identified as reportable even when the individual transaction amount is below ₹20,000, if the reporting thresholds under Sections 269SS are triggered after considering same-day aggregates or the outstanding balance with the party.

Step -3: View / Download Report 

1. This clause ensures that every loan borrowed or deposit taken has not been accepted in cash and has been accepted only by cheque and that the cheque is an A/C payee cheque only. 
2. The user can hover over the column names to understand the details that are captured in the column; an example has been marked. This helps the user understand the table's application better.