SB Order 1/2006 – Mode of Repayment of Deposits

Here it SB Order 1/2006 – Mode of Repayment of Deposits under section 269 T of Income tax Act F. No. 113-11/2003-SB Dated 10.01.2006

SB Order 1/2006

F.No.113-11/2003-SB
Government of India
Ministry of Communication
Department of Posts
(F.S. Division)

Dated 10.01.2006

To
All Heads of Circle/Regions
Addl. Director General APS, New Delhi

Subject: Mode of Repayment of Deposits Under Section 269T of the Income tax Act.

Sir/Madam

1. The undersigned has been directed to forward a copy of notification issued by Ministry of finance, Vide letter no. I.D. No. 2/5/2000-NS-II Dated December 27,2005 on the above subject.
2. It is Requested that the contents of this notification may be immediately circulated to all concerned for information , Guidance and necessary action.
3. Kindly Acknowledge receipt.

Yours faithfully
Manisha Mishra
ADG (BS&SC)

Copy to :-

1. Director of Audit, P&T Delhi
2. All Directors/Dy. Directors of Accounts, Postal
3. Director,Postal Staff College, Ghaziabad
4. All Principals,Postal training Centres
5. DDG (PG) /DDG(VIG)
6. AD(SB)/PG/Inspection/PF/Vigilance/Postal Accounts Section
7. All recognized staff unions and associations
8. All accounts officers ICO (SB)
9. Ministry of Finance (DEA) NS-II Section, North Block, New Delhi
10. PS to Member (D)

Notification issued by Ministry of finance, Vide letter no. I.D. No. 2/5/2000-NS-II Dated December 27,2005-

Government of India
Ministry of Finance
Department of Economic Affairs
(Budget Division)

Subject : Mode of Repayment of Deposits Under Section 269 T of the Income tax Act.

Department of Posts may please refer to their I.D. no. 113-11/2003-SB Dated 06.07.2005 on the subject cited above. The matter has been examined in consultation with CBDT which have informed that in terms of provisions of Section 269SS of the IT Act, A Post office savings bank can accept any loan or deposit in cash in excess of Rs 20000/- but is term of provisions of section 269T of the income tax act , A post office savings bank cannot repay by way of cash any loan or deposit made with, If the amount of such loan or deposit along with the interest, if any, Payable thereon exceeds Rs. 20000/-.

They have further intimated that ceiling of repayment of loan or deposit upto Rs. 20000/- by way of cash under section 269 T of the IT act was provided in 2002 as against earlier ceiling of Rs. 10000/- applicable since 1981. There is no justification to enhance this limit to Rs. 50000/- just after a period of 3 years.

PC Singh
Under Secretary to Govt. of India.

Department of Posts ( Ms. Manisha Mishra, ADG (BS&SC) , Dak Bhawan, Sansad Marg,ND Ministry of Finance, DEA, ID No. 2/5/2000-NS.II Dated 27.12.2005