Cash deposit transaction in bank

This query is : Resolved

megha (Querist)
Follow

15 February 2014 Hi, yesterday i will ask u about my query for cash transaction. Actually this is related to income tax notice.i will ask u again one question for in this query. eg- if 1 person in his bank accounts deposited in more cash transaction, but this is a cash loan taken to another person and there is no taxable income for this person. this cash loan taken to for the purpose of property developed. but recently no developed the property for this person.and this cash he used in his some personal expenses eg. hospitailization, marriage, and remaining cash he will give for opposite person. so no income, all cash loan are return, no cash balance in his hand. so wat can i do in this situation ?

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

15 February 2014 Megha,

please note that taking or repaying loans in cash is covered under 269SS and 269T. if you violate 269SS/269T penalty under 271D/271E respectively wherein the penalty amount is equivalent to the amount so involved.

So where there may not be any income taxability as such, taking and repaying loans in cash will result in taxation by virtue of 271D/271E

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok