Regarding loan cash

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accountant
564 Points Posted on 31 January 2021
respected members
I have cash paid to one friend rs.450000 so this entry is unsecured loan or loans and advances.
thank u in advance
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On 31 January 2021 at 12:22 Report
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Quick Summary
This discussion clarifies how to classify a £450,000 cash payment to a friend. It's considered a loan and advance for the payer and an unsecured loan for the friend. Crucially, paying any sum over £20,000 in cash violates Section 269T, potentially incurring a 100% penalty under Section 271E for the recipient. The payer must also prove the source of the cash, leading to potential trouble for both parties.

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17269 Points Posted on 31 January 2021
It's Loans and Advances paid . However mode of payment that is cash will invite penalty 100% of such amount.
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On 31 January 2021 at 15:17
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12244 Points Posted on 31 January 2021
Penalty will attract in the hands of recipient only
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On 31 January 2021 at 15:26
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accountant
564 Points Posted on 31 January 2021
Sir his not repay this loan so I have case on this party.
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On 31 January 2021 at 15:32
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17269 Points Posted on 31 January 2021
Very much right. Also the lender has to prove the bonafides source of cash 4.50 lakhs. So trouble will be on both sides.
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On 31 January 2021 at 15:32
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Accountant
4533 Points Posted on 31 January 2021
This is loan and advance for u and unsecured loan for your friend. penalty of 100% amount will levied.
3 Reply
On 31 January 2021 at 21:52
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Chartered Accountant
86505 Points Posted on 01 February 2021
You cannot pay any sum in cash if amount of loan exceeding Rs. 20000 .It will attracts 100% Penalty u/s 271E on violation of Sec 269T
2 Reply
On 01 February 2021 at 00:27

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