22 December 2008
As per section 269SS of the income tax act,1961 no person is allowed to take any loan or deposit exceeding Rs.20,000/- otherwise than by way of account payee cheque or draft. If any amount is already taken as loan or deposit from the same person and the total amount including present loan or deposit is going to exceed the same is prohibited. As per section 269T no loan or deposit can be repaid otherwise than by way of account payee cheque or draft if the total outstanding in the account or the amount to be repaid is Rs.20,000/- or more.
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