Loan disbursement above 2 lakhs by cash

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JACOB ABRAHAM KURIALANICKAL (Querist)
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29 June 2025 Do the following transactions have any issues? please advise

Mr. X, a small moneylender, proprietor, whose total loan disbursement is below 10 lakhs during the year, has one loan above 2 lakhs by cash. The loan account was settled in cash during the year, and no balances remained as of the date of the Balance Sheet. His total income is below Rs. 2 lakhs and not filing ITR.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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29 June 2025 As per sec. 269ST IT act, no person is allowed to receive cash of Rs. 2 lakhs and above.
As per sec. 269T: This section complements Section 269SS by ensuring that the repayment of loans and deposits also happens through formal banking channels, further curbing the generation and circulation of black money. Limit Rs. 20,000/-

JACOB ABRAHAM KURIALANICKAL

JACOB ABRAHAM KURIALANICKAL (Querist)
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29 June 2025 Is Section 269SS, 269ST or 269T applicable to an individual registered under the Kerala Money Lenders Act, 1958, Advancing a loan against Gold or other securities

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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29 June 2025 The sections are applicable as per income tax act, to all the assesses whether advancing Gold loan or any other loan/advances all over India.

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