Can i make Repayment of Loan 1,00,000/- in Cash?
If no, what are the consequences i have to face if i paid in cash?
Please advise asap
CA Ramsai N
(Fresher)
(594 Points)
Replied 13 September 2013
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
Siddharth
(Student)
(128 Points)
Replied 13 September 2013
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.
muthusundar
(Finance Manager)
(185 Points)
Replied 13 September 2013
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