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

No Violation of Section 269TT: HUF Income Distribution Complies with Non-Cash Transaction Rules A query was raised regarding the journal voucher entry for unsecured loans and whether section 269TT of the Income Tax Act was violated during income distribution within a Hindu Undivided Family (HUF). The family, consisting of four members and an HUF, distributed income under section 10(2) after paying taxes. The income was transferred by account payee cheque to the Karta and then distributed to coparceners. The response clarified that there was no violation of section 269TT, as all transactions were non-cash and complied with the required provisions.