LIVE GST Certification Course by CA Arun Chhajer. Register Now!!

Cash loan given

Pramod Sen (Advocate ) (156 Points)

29 April 2019

wich section of income tax restrict for giving unsecured loan in cash.
and lander or receiver who is liable for penalty.

Reply
Follow
Share

4 Replies

Zeal Bangdiwala (Partner at N. Gamadia & Co.) (363 Points)
Replied 29 April 2019

Section 269SS and Section 269T prohibits such transactions.

Pramod Sen (Advocate ) (156 Points)
Replied 29 April 2019

these are applicable on borrower .

Zeal Bangdiwala (Partner at N. Gamadia & Co.) (363 Points)
Replied 29 April 2019

Yes its applicable to borrower and the penalty levied is 100% of the amount accepted/repaid as loan or deposit in cash. So it is better not to accept any loan in cash. Also, if at all loan has been accepted or repaid in cash, department may ask the source of the lender who extends the loan in cash. So thereby the lender may also be in a trouble if he has not declared such cash in his return of income.