Loan repaid by cash by individual to other one
This query is : Resolved
CA Pramod Jain
(Querist)
09 February 2011
Dear All,
1.Can a loan be repaid by one individual to another individual, which he has taken by cheque.
2. Can related individuals transact loan taken and payment by cash mode.
We all know it is better to do it with cheques , but please tell me whether above methods are also allowable.
1.Can a loan be repaid by one individual to another individual, which he has taken by cheque.
2. Can related individuals transact loan taken and payment by cash mode.
We all know it is better to do it with cheques , but please tell me whether above methods are also allowable.
CA PARAS BAFNA
(Expert)
09 February 2011
In case loan amount together with interest thereon exceeds Rs. 20000/
Section 269T prescribes that such repayment should be made by account payee cheque only.
In the Section it has been clearly mentioned that such a/c payee cheque or Draft should be in the name of person who has made the loan or deposit.
As such for loan or deposit amount exceeding such methods are not allowed.
Section 269T prescribes that such repayment should be made by account payee cheque only.
In the Section it has been clearly mentioned that such a/c payee cheque or Draft should be in the name of person who has made the loan or deposit.
As such for loan or deposit amount exceeding such methods are not allowed.
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