Journal Voucher Enrty for Unsecured Loans

[Guest]

my Family is of 4 members me, father, mother and sister. We have 5 file 4 as mentioned and 1 HUF of my father. HUF had earned some good amount and the tax is been paid on the same and we have distributed the income under section 10(2) of income tax within the co parcners. the entire money was given by chq to Karta of HUF my father from HUF account and then JV was was passed from my father books to respective coparcernes . is section 269tt is voilated

[Sunil K. Jain]

There seems to be no violation of section 269 TT in this case since redemption came in favour of HUF by account payee cheque only and the requirment of section is met at that stage. Now further distribution is as per section 10(2) moreover, no cash transaction took place in this case at any stage.

AI Summary

Restriction on cash receipts avoided where HUF funds were paid by account payee cheque and distributed by journal entries. Receipt by the HUF was effected by account payee cheque to the Karta and subsequent distributions were made by journal vouchers to coparceners; because no cash transaction occurred and allocations were claimed under the family income exemption regime, the restriction on cash receipts does not apply.