14 January 2011
Dear All... If a person Paying Rs.200000 as loan amount by account payee cheque and 2000 intt. by cash... whether section 269T get attracted?
If yes... Explain please.. instead of quoting section 269SS and 269T..
In accrual basis of accounting, the Interest which is due first accrues and gets credited to the Loan Creditor's account and subsequently interest is paid , the loan creditor's account is debited. On account of the same the payment takes the character of payment to loan creditor whose balance exceeds Rs.20000 and hence it has to be necessarily done by either Crossed Cheque/ Demand draft.
CAclubindia
