Income Tax Act, 2025
Section 3: Ins. by Act 23 of 1986, s. 33 (w.e.f. 11986).
3. Ins. by Act 23 of 1986, s. 33 (w.e.f. 11986).
759
1[CHAPTER XXB
REQUIREMENT AS TO 2[MODE OF ACCEPTANCE, PAYMENT OR REPAYMENT]
IN CERTAIN CASES TO COUNTERACT EVASION OF TAX
3[269SS.Mode of taking or accepting certain loans, deposits and specified sum.—No person shall
take or accept from any other person (herein referred to as the depositor), any loan or deposit or any
specified sum, otherwise than by an account payee cheque or account payee bank draft or use of
electronic clearing system through a bank account, if,—
(a) the amount of such loan or deposit or specified sum or the aggregate amount of such loan,
deposit and specified sum; or
(b) on the date of taking or accepting such loan or deposit or specified sum, any loan or deposit or
specified sum taken or accepted earlier by such person from the depositor is remaining unpaid
(whether repayment has fallen due or not), the amount or the aggregate amount remaining unpaid; or
(c) the amount or the aggregate amount referred to in clause (a) together with the amount or the
aggregate amount referred to in clause (b),
is twenty thousand rupees or more:
Provided that the provisions of this section shall not apply to any loan or deposit or specified sum
taken or accepted from, or any loan or deposit or specified sum taken or accepted by,—
(a) the Government;
(b) any banking company, post office savings bank or co-operative bank;
(c) any corporation established by a Central, State or Provincial Act;
(d) any Government company as defined in clause (45) of section 2 of the Companies Act, 2013
(18 of 2013);
(e) such other institution, association or body or class of institutions, associations or bodies which
the Central Government may, for reasons to be recorded in writing, notify in this behalf in the
Official Gazette:
Provided further that the provisions of this section shall not apply to any loan or deposit or
specified sum, where the person from whom the loan or deposit or specified sum is taken or accepted
and the person by whom the loan or deposit or specified sum is taken or accepted, are both having
agricultural income and neither of them has any income chargeable to tax under this Act.
Explanation.—For the purposes of this section,—
(i) “banking company” means a company to which the provisions of the Banking Regulation Act,
1949 (10 of 1949) applies and includes any bank or banking institution referred to in section 51 of
that Act;
(ii) “co-operative bank” shall have the same meaning as assigned to it in Part V of the Banking
Regulation Act, 1949 (10 of 1949);
(iii) “loan or deposit” means loan or deposit of money;
(iv) “specified sum” means any sum of money receivable, whether as advance or otherwise, in
relation to transfer of an immovable property, whether or not the transfer takes place.]
the amount of such loan or deposit or specified sum or the aggregate amount of such loan,
deposit and specified sum; or
on the date of taking or accepting such loan or deposit or specified sum, any loan or deposit or
specified sum taken or accepted earlier by such person from the depositor is remaining unpaid
(whether repayment has fallen due or not), the amount or the aggregate amount remaining unpaid; or
the amount or the aggregate amount referred to in clause
together with the amount or the
aggregate amount referred to in clause
the Government;
any banking company, post office savings bank or co-operative bank;
any corporation established by a Central, State or Provincial Act;
any Government company as defined in clause
of section 2 of the Companies Act, 2013
(18 of 2013);
such other institution, association or body or class of institutions, associations or bodies which
the Central Government may, for reasons to be recorded in writing, notify in this behalf in the
Official Gazette:
Provided further that the provisions of this section shall not apply to any loan or deposit or
specified sum, where the person from whom the loan or deposit or specified sum is taken or accepted
and the person by whom the loan or deposit or specified sum is taken or accepted, are both having
agricultural income and neither of them has any income chargeable to tax under this Act.
Explanation.—For the purposes of this section,—
“banking company” means a company to which the provisions of the Banking Regulation Act,
1949 (10 of 1949) applies and includes any bank or banking institution referred to in section 51 of
that Act;
“co-operative bank” shall have the same meaning as assigned to it in Part V of the Banking
Regulation Act, 1949 (10 of 1949);
“loan or deposit” means loan or deposit of money;
“specified sum” means any sum of money receivable, whether as advance or otherwise, in
relation to transfer of an immovable property, whether or not the transfer takes place.]