Interest received in cash

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

06 November 2017 Suppose a Partnership firm dealing in Finance & Leasing takes Interest from Loan given in Cash.
Example- Rs. 1,00,000/- Loan given and Interest of Rs. 1,250/- per month. So Rs. 1250 can be received in cash monthly?

What are the implications of Such Transactions?

Sumeet

Sumeet (Expert)
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06 November 2017 I dont think there are any restriction on recieving cash in lieu of Interest Income from Financing Activities except newly inserted section 269ST according to which reciept in cash should not exceed 2 Lakh on a single day or against a single transactions.

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Querist : Anonymous

Querist : Anonymous (Querist)

06 November 2017 If Interest of Rs. 20000/- paid in cash and Rs. 200000 principal loan amount received by cheque. Any contraventions?

RAJA P M

RAJA P M (Expert)
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06 November 2017 Cash Above 10k is restricted u/s 269SS....

RAJA P M

RAJA P M (Expert)
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06 November 2017 Cash Payment* Above 10k is restricted u/s 269SS....

Querist : Anonymous

Querist : Anonymous (Querist)

06 November 2017 Here i am asking for Receiving Rs. 10000/- and above interest in cash. No question of payment as strictly prohibited u/s 26955.
Please let me know if there are any implications if we receive interest in cash.

Sumeet

Sumeet (Expert)
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06 November 2017 No Implications in case of Reciept

RAJA P M

RAJA P M (Expert)
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06 November 2017 Yes... I agreed No implications of Receipt... But, He/She asking (If Interest of Rs. 20000/- paid in cash). So, I said it's not allowed....

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