TaxTMI 
TaxTMI 
Whether payments by Husband to contractors doing carpentry and other work in house built by wife attracts Section 269SS These are repaid by waife after a year.
Both husband and wife are assessees.
Sathya
Sec. 269 SS
22 Jul 2011 
3 Replies 
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Acceptance of cash deposits: payments by spouse to contractors may attract section 269SS if treated as a loan by recipient.
Whether payments by a husband to contractors for work on his wife's property constitute an acceptance of cash deposits under Section 269SS turns on how the wife records the amounts: if treated as a loan or deposit by the wife, the provision may apply; if the husband pays contractors directly and the wife accounts for no receipt (or the husband records the payments as drawings), the element of acceptance of a cash deposit by the wife may be absent. (AI Summary)
Whether payments by a husband to contractors for work on his wife's property constitute an acceptance of cash deposits under Section 269SS turns on how the wife records the amounts: if treated as a loan or deposit by the wife, the provision may apply; if the husband pays contractors directly and the wife accounts for no receipt (or the husband records the payments as drawings), the element of acceptance of a cash deposit by the wife may be absent. (AI Summary)