Loan given in cash by a

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chetan (Querist)
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01 October 2014 Dear sir, A has given loan to B of Rs 740000 in cash is there any problems??? 1. is this above amount should mention in audit report or not and where ??A is under audit. 2. is there any effect in the it return of A?? 269ss and t section is for only loan or taken na ?? then what about loan given in cash???

CA VISHWAKEERTHI.P.S.

CA VISHWAKEERTHI.P.S. (Expert)
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01 October 2014 Yes 269 SS applicable to acceptance of loan exceeds Rs. 20000/- and
269T applies to already accepted loans.

In your case it not effect to "A"
But it effect to "B" party in your case.

Other wise make it as advance or deposits there by it not effect the "A" as well as "B".