India - Income Tax Act 2010 - Saarc

S. 269T I.T. ACT, 1961 1.890Explanation.—For the purposes of this section,—59[(i) “banking company” means a company to which the Banking RegulationAct, 1949 (10 of 1949), applies and includes any bank or bankinginstitution referred to in section 51 of that Act ;](ii) “co-operative bank” shall have the meaning assigned to it in Part V ofthe Banking Regulation Act, 1949 (10 of 1949) ;(iii) “loan or deposit” means loan or deposit of money.]60[Mode of repayment of certain loans or deposits 61 .269T. No branch of a banking company or a co-operative bank and no othercompany or co-operative society and no firm or other person shall repayany loan or deposit made with it otherwise than by an account payee cheque oraccount payee bank draft drawn in the name of the person who has made theloan or deposit if—(a) the amount of the loan or deposit together with the interest, if any,payable thereon, or(b) the aggregate amount of the loans or deposits held by such personwith the branch of the banking company or co-operative bank or, asthe case may be, the other company or co-operative society or thefirm, or other person either in his own name or jointly with any otherperson on the date of such repayment together with the interest, ifany, payable on such loans or deposits,is twenty thousand rupees or more:Provided that where the repayment is by a branch of a banking company or cooperativebank, such repayment may also be made by crediting the amount ofsuch loan or deposit to the savings bank account or the current account (if any)with such branch of the person to whom such loan or deposit has to be repaid :62[Provided further that nothing contained in this section shall apply to repaymentof any loan or deposit taken or accepted from—(i) Government;(ii) any banking company, post office savings bank or co-operative bank;(iii) any corporation established by a Central, State or Provincial Act;(iv) any Government company 63 as defined in section 617 of the CompaniesAct, 1956 (1 of 1956);59. Substituted by the Finance Act, 1985, w.e.f. 1-4-1986. See also Appendix for meaning of‘banking company’.60. Substituted by the Finance Act, 2002, w.e.f. 1-6-2002. Prior to its substitution, section 269Twas inserted by the Income-tax (Second Amendment) Act, 1981, w.e.f. 11-7-1981 and lateron amended by the Finance Act, 1984, w.e.f. 1-4-1984, Finance Act, 1985, w.e.f. 1-4-1986 andDirect Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.61. For the meaning of the term “deposit”, see Taxmann’s Direct Taxes Manual, Vol. 3. See alsoCircular No. 479, dated 16-1-1987, Circular No. 522, dated 18-8-1988 and Circular No. 556,dated 23-2-1990. For details, see Taxmann’s Master Guide to Income-tax Act.62. Inserted by the Finance Act, 2003, w.r.e.f. 1-6-2002.63. For definition of “Government company”, see footnote 71 on p. 1.23 ante.