Clause-31(C) – Section 269T

Clause-31(C) – Section 269T

What is it  ?

The clause 31 of the tax audit report in form no. 3CD requires the auditor to submit various information regarding compliance  with the Section 269SS and 269T, in various sub clauses (i.e., sub clause 31(a), 31(b), 31(c), 31(d) and 31(e)). 
Section 269T of the Income Tax Act prohibits an individual from repaying the deposit or specified sum, or loan otherwise than by a bank draft of an account payee or account payee cheque or through the electronic clearing system of a bank account, if:
 (a) The deposited amount of the deposit or loan, including the interest amount, is Rs. 20,000 or more, or,
 (b) The total sum of the deposit or loan, adding the interest amount held by an individual in their name or with some person (jointly), is Rs. 20,000 or more.

1. This clause ensures that every loan borrowed or deposit accepted is repaid only by cheque and that the cheque is an A/C aye cheque only.
 This is the reverse of the Clause-31(a) – Section 269SS
2. The ledgers pertaining to every payee to whom there are dues pending and not squared-off in the previous year is listed / added on this page. 

1. The user can hover over the column names to understand the details that is captured in the column  , an example has been marked. This helps the user to understand the application of the table better.
2. Every debit (payment) made to the payee is listed on this page and the user can view/ download a report with all these details from the next screen.