Income tax

Case :1

IF the payment is making to following  - No issues.

a) Government ;
(b) any banking company, post office savings bank or co-operative bank ;
(c) any corporation established by a Central, State or Provincial Act ;
(d) any Government company as defined in section 617 of the Companies Act, 1956
(e) other notified insititutions

Case 2:

But in case such repayment is making to other than case 1, the Provision of Sec 269 T will attract.

Consequence :: Joint Comissioner can leavy  a penality equalent to amount repaid u/s 271E

It is always advisable to pay in DD or Account payee cheque rather than cash

Hi,

NO you cant repay such amount in cash.

If repaid in cash it will be a non-compliance of sec269t and penalty will be levied u/s 271E.

The amount of penalty will be the loan amount repaid.