Section 69D of the Income-tax Act, 1961--Clarification regarding

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....ith effect from April 1, 1977, which provides that if any amount is borrowed from any person on a hundi or any amount due on it is re-paid to any person, otherwise than through an account payee cheque drawn on a bank, the amount so borrowed or repaid shall be assessed as the income of the taxpayer borrowing or repaying the said amount, for the previous year in which the amount is borrowed or repai....

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....for example Darshani Hundi, Muddati Hundi, Shaha Jogi Hundi, Jokhmi Hundi, Nam Jog Hundi, Dhani Jog Hundi, Jawabi Hundi and Zickri chit. The characteristics of hundis differ according to the varieties of the same. The following characteristics are found in most of the hundis : (i) A hundi is payable to a specified person or order or negotiable without endorsement by the payee. (ii) A holder is e....