How much cash amount allowed to loan prepayment/foreclosure in respect of bank processing. I have home loan and my outstanding/due amount is 15 lakh. Now I want to permanently close my loan by cash paying Rs 15 lakhs at once to the punjab national bank.
I read somewhere that
> To government or banking company there is no limit and exempt from section 269SS/269ST
> To NBFC/HFC, there is limit of less than 2 lakh under section 269ST
Section 269ST meaning you should make payments below 2 lakhs or use non-cash modes for amounts of 2 lakhs or more. So you can make the full Rs.15 lakhs cash payment for prepayment/foreclosure without breaching Section 269SS/269ST, as the exemption applies to banks.
Legally, cash payment of ₹15 lakh to Punjab National Bank (a banking company) does NOT violate section 269ST, because banks are expressly exempt under the proviso to section 269ST.
Section 269SS is also not applicable, since you are repaying a loan, not accepting one.
Practically, however, PNB is very unlikely to accept ₹15 lakh in cash due to RBI AML/KYC norms and internal bank policies, and may insist on account-payee transfer instead.
Vardhaman Group of India
Pimpri Chinchwad
CA Inter
View Details
YOGESH KAPOOR AND ASSOCIATES
New Delhi
B.Com
View Details
Karia Overseas
Ahmedabad
CA
View Details
CAclubindia
