11 October 2013
Sir, I am running a trading business and in my personal name I had advanced a cash loan of 20 lakh to a person, now this person has refused to pay, the matter went to criminal court as his cheques bounced. In mediation cell it was decided that he will pay 75000 monthly. This person has not shown loan in his books, now he is saying take this settled amount in cash only. My query is how shall I furnish my annual return, I can give cash advance, but can I also receive cash in excess of 20000, against loan.
11 October 2013
Section 269SS provides that any loan or deposit shall not be taken or accepted from any other person otherwise than by an account payee cheque or account payee bank draft if the amount of such loan or deposit or the aggregate amount of such loan and deposit is 20000 or more..
A penalty equivalent to the amount of such loan or deposit may be levied by the Joint commissioner.
However, you can receive the said amount in cash... There is no provision in receiving cash, you can receive any amount in cash..
CAclubindia
