Is there any rule against issuing loan in cheque and received back in cash???
Do I need its PAN number or address or name of it???
10 Replies
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 02 June 2021
Yes, refer to the provisions of section 269ST regarding cash receipts.
CA. Sourav Sarkar
(Chartered Accountant )
(24583 Points)
Replied 02 June 2021
Refer section 269 in whole
AKN FINANCIALSERVICES
(146 Points)
Replied 02 June 2021
There is a penalty provision if repayment loan done in cash, refer section 269T for repayment and 269SS for loan given.
Ankit Neema
(2742 Points)
Replied 03 June 2021
You can't do it, if you received the repayment in cash then it is contrary to the provisions of 269T ,
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 03 June 2021
Here the query is from the perspective of lender. Lender has paid in cheque (269SS not applicable) and the lender has received cash being loan repayment by the borrower (269T restricts the borrower to pay in cash). So only 269ST is relevant here I think.
Do let me know if I've missed anything.
CA. Sourav Sarkar
(Chartered Accountant )
(24583 Points)
Replied 03 June 2021
269SS and 269T is applicable
Ankit Neema
(2742 Points)
Replied 03 June 2021
Poornima Ji , 269ST is restricting the person from receiving a cash amount to more than Rs. 2lakh ,
for Repayment of loan 269T will apply.
for Repayment of loan 269T will apply.
AKN FINANCIALSERVICES
(146 Points)
Replied 03 June 2021
Agree with Ankit Ji, as I have earlier mentioned the same.
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 03 June 2021
@ Ankit, Yes, I completely agree with you that 269T restricts repayment of loan in cash above a certain limit.
But here the query seems different. Let's assume the lender disbursed loan in cheque and the borrower repaid in cash. In that case, the borrower has violated the provisions of 269T and hence 100% penalty to the borrower.
Is the lender covered under 269T? Let's analyze:
Here is the excerpts from 269T:
Section 269T prohibits any person to REPAY the loan or deposit or specified sum otherwise than by an account payee cheque or........
As I understand, 269T restricts the person repaying loan (not person receiving)
Now, let's look at excerpts from 269ST:
Section 269ST prohibits any person to RECEIVE an amount of Rs.2 lakh and above in cash:
(i) In aggregate from a person in a day, or (ii) In a single transaction, or (iii) In respect of transactions relating to one event or occasion from a person .
So, on reading 269ST, what I understand is that the lender (person receiving money) is covered under 269ST.
Please share your views.
Ankit Neema
(2742 Points)
Replied 03 June 2021
@ Poornima Ji , You are right , as 269T is for repayment , it's not apply in receipt. Receipt in cash 269ST will apply.
I agree with your views,
I agree with your views,
Recent Topics
- Iska djd djrbdsjebshe sir ur rei ejr reinr the jr
- GST registration for medical shop in Karnataka
- Hsshs me know if you are free number of the
- Chu Kang and the situation of the situation and I
- How to reverse wrong transaction payment in phonep
- Paytm wrong transaction
- How to reverse wrong transaction payment in phonep
- Issue with refund for person who has filed for rel
- How to take ITC for October 2024 GST Payment in PM
- How to refund a wrong transaction Phone Pe?
Related Threads
CAclubindia
