My Question is
I have a pawn shop in a small village where I lend money to people in cash for there valuables.
90% of people to whom I lend don't have bank accounts so I give them in cash. Many times it is more than Rs. 20,000.
Whether this will be disallowed as per section 40A(3) of the Income tax Act read with rule 6DD, my village have Banking services but, the people I'm lending don't.
Does the provisions of section 269SS and 269T.
I'm the lender and its my business.
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Payments in cash in case of money lending business
Replies (3)
Yes. 269SS will be attracted and penalty u/s 271D can be levied
There is an exemption if both lender and borrower have agricultural income and neither of them have taxable income
Sir,
What if the people i'm lending don't have bank accounts?
If You have a pan card than you can open a bank account easily in any bank and than you can do a process of money lending business. and if you have any changes in your pan card then get a duplicate pan card copy.
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