Unsecured Loan IT

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.

@ 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.