12 September 2009
1) No, if payment made in cash is exactly Rs.20000/-. Only if the cash payment exceeds Rs. 20000/-, the dissallowance u/s 40A(3) is attracted.
2) Yes, if loan of Rs. 20000/- is accepted or repaid in cash, then it needs to be reported in Form-3CD.
3) Yes, if you accept and repay Rs.20000/- or more in cash, then it will be in contravention of section 269SS and 269T and the penalty for this contravention is given below:
i) u/s 271D: Any person taking or accepting certain loans and deposits in contravention of provisions of sec. 269SS, will be levied penalty equal to the loan or deposit taken or accepted.
ii) u/s 271E: Any person repaying any loan or deposit specified in sec 269T in contravention of its provisions will be levied penalty equal to the loan or deposit repaid.
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