Cash payment of rs.500000/- as loan

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 November 2015 Sir,
please tell me when Assessee pay cash Rs.500000/- as loan to his friend but he refused to received the loan amount.
Q. What will happen with the Assessee as Income Tax Act.?
Q. Whether Assessee has to prove the loan payment because Section 269SS will bind the person who receive the loan amount but not bind on the Assessee who has paid loan of Rs.500000/- cash.
Please answer with penalty provision also.
thanks,
Jagat Tatia

CA Harish Suwalka

CA Harish Suwalka (Expert)
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06 November 2015 When the other person has not accepted the loan than where is the need to apply 269ss

Amol S Joglekar

Amol S Joglekar (Expert)
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06 November 2015 who has refused to RECEIVE the loan amount. Assessee or his friend?

Yogesh Agarwal

Yogesh Agarwal (Expert)
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07 November 2015 I guess you are taljing about assessment. If amount is refused by your friend during enquiry it may be treated as undisclosed investment or expenditure.

Querist : Anonymous

Querist : Anonymous (Querist)

09 November 2015 Sir,
My querry that whether any person who paid cash amounting to Rs.500000 to some one than whether there is penal provision against him or not.
Whether there is provision to restriction to pay cash.
As the restriction for accepting cash under provision Section 269SS, is there is any provision for the giver or not.

Yogesh Agarwal

Yogesh Agarwal (Expert)
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09 November 2015 No there is no penal provision for lender...

Amol S Joglekar

Amol S Joglekar (Expert)
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10 November 2015 Lending of money requires "Lending Liscence" from RBI.

269SS is just for a small sections of people.

Over and above Income Tax Act, lending of money without having liscence is a crime. You can take the help of that if desired.