Dear Members,
As per Section 269SS & 269T, a person is not suppose to accept & repay the loan in an amount exceeding Rs.20,000 otherwise than by way of account payee cheques. These details are also required to be reported (whether through cheque or otherwise) in Form 3CD by CA. My query in this regard is;
Where the person accepts and repays the loan otherwise than by way of account payee cheques, will the penalty be leviable for amount collected & borrowed separately. For example, if loan taken is Rs.1.00 lakh and the same is repaid, penalty will be Rs.2.00 lakh.
I believe the above provisions are applicable only for acceptance and repayment and not for payment & receiving back. So as per my understanding, these provisions are attracted only if loan is collected and not if loan is given.
Please clarify.
Regards/Dharmaraju
CAclubindia
