Indudhar (Tax Advocate) (427 Points)
02 October 2010Friends
Is repayment of deposit by cash is permitted under IT Act?
Does the payment of cash below Rs. 20,000 per day permitted no matter how many times it is paid during the year?
If no then what are the exceptions?
How can it be planned?
Please guide me, thanks in anticipation..
madhur gupta
(student/article )
(1022 Points)
Replied 03 October 2010
No repayment of cash is not allowed upto rs.20000 during whole year
it seems that you are thinking of attracting sec40(A)3 prov but here on repayment of deposit sec 269T will attract and penalty will be there for amount equal to loan repaid.
its better to make all payments by a/c payee cheque
however if payment is made to govt.then it may be in cash.it is covered under execptions
karan challani
(article)
(82 Points)
Replied 04 October 2010
loan cannot be repayed in cash as per the IT act.It should only be payed by an account payee cheque only
Analysis of 20 GST Notices (including 2 Appeals) and Practise on Drafting(with recording)
CAclubindia
