I have an old debtor in my books for an amount of around Rs. 5 Lakhs.
He wants to settle the account in cash.
Can i do so or will it attract penalty ?
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Cash receipt of more than 2 lakhs from a n old debtor
Replies (4)
Section 269ST For cash acceptance...
No person shall receive an amount of two lakh rupees or more—
| (a) | in aggregate from a person in a day; or | |
| (b) | in respect of a single transaction; or | |
| (c) | in respect of transactions relating to one event or occasion from a person, |
otherwise than by an account payee cheque or an account payee bank draft or use of electronic clearing system through a bank account:
in contravention of the provisions. he shall be liable to pay, by way of penalty, a sum equal to the amount of such receipt
For Borrower: Section 269T:
Loan or deposit cannot be repaid, otherwise than by an Account payee cheque or bank draft or online transfer, if the amount of loan or deposit is Rs. 20,000 or more. On Contraventions penalty U/s 271E is attracted which is 100% of the amount repaid.
Dear sir,
I'm aware of the provisions first of all its not a borrower but a debtor in the ordinary course of business and it is fora series of transactions.
Penalty will be attracted.
Can I pay him Rs. 1,75,00 in cash ?
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