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
.
is there any penalty in my case ?
Legally, there is NO Income-tax Act restriction on paying ₹15 lakh in cash to a scheduled bank (Punjab National Bank) for loan foreclosure.
No penalty under Sections 269SS / 269ST will apply if the payment is accepted by the bank.
However ⚠️ banks have their own internal cash-acceptance rules, which is where the real issue lies.
If u make 15 lakh cash payment in bank...it will be high value transaction...this reported by bank in your AIS under SFT
There is high chances that incometax dept will ask for additional clarification on such cash deposits....based on your itr filing
Arvindkumar Maniar & Co.
Rajkot
CA
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