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LOAN FROM INDIVIDUAL

SHEIK FAREED (TAX PRACTITIONER) (96 Points)

11 February 2020

Dear Expert,

shall I receive Rs: 1,50,000/- from individual as cash in a day..?

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4 Replies

anirudh (student) (178 Points)
Replied 11 February 2020

No,
As per section 269SS of the income tax act 1961,
No person shall receive loan from any other person other than account payee cheque , A/c payee bank draft, Ecs .
if loan amount exceed 20,000/- .
So you cannot take loan of 1,50,000/- in cash.

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SHEIK FAREED (TAX PRACTITIONER) (96 Points)
Replied 11 February 2020

So kind of you sir...

Sir, Will i receive Rs: 1,50,000/- from various person by cash, in a day...?

anirudh (student) (178 Points)
Replied 11 February 2020

Sir,
Yes you can receive cash of 1, 50,000 from various persons.(not exceeding 20,000 from a person). and I want to tell that
It is not the matter of cash received in a day ,
it says no one should receive from a person exceeding 20,000 .

I will tell you one example , you take loan of 15000 from a person in this year (which is unpaid) and you want to take another 6000 in cash.
provision says you shall not take amount more than 20k .
so ,you can take upto 5000 in cash and amount exceeding that you should take from only in ECS , A/C PAYEE etc.

I hope you understand

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