I have taken loan of Rs.35,000/- on 4/4/2013, i.e. in F.Y. 2013-14 , from my friend thru a/c payee cheque in my name.
Now I wish to repay him this loan.
Can I repay him by cash in part as 10K + 10K + 10K +5K on different dates.
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Can i repay personal loan in cash?
Replies (1)
It is always wiser to accept loans and repay them by cheques so that proper record and evidence is maintained of the transaction. In your case, since you have received the amt by cheque, it appears in your and his records. But if you repay by cash any/ both of you may not record it.
Besides provisions of section 269T might be attracted which penalises repayment of loans by cash, where the loan amount > 20000 (pl note that the loan amount+interest is considered here for the limit, not the repayment amt)
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