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269ss

Vikash (G) (393 Points)

10 November 2017

Loan taken from person in cash who is not having taxable income whether 269ss applicable or exempted

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5 Replies

rama krishnan (12234 Points)
Replied 10 November 2017

yes it applicable

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B Vinay Reddy (Hyderabad ) (7837 Points)
Replied 10 November 2017

Section- 269SS- No person shall accept any loan/deposit in cash of Rs. 20,000 or more.

Cash loan from a person should not be 20,000 or more at any point of time. E.g- A took loan from B Rs.18,000 in cash. Now A cannot take more than Rs. 1999 from B in cash.Section 271D - if a loan or deposit is accepted in contravention of the provisions of section 269SS then a penalty equivalent to the amount of such loan or deposit may be levied by the Joint commissioner.

Section- 269T- No person shall Pay any loan/deposit in cash of rs 20,000 or more.

In the above e.g.- B cannot pay more than 1999 to A in Cash.On Contraventions, penalty U/s 271E is attracted which is 100% of the amount repaid.