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Sec 269ST

05 July 2017

In a banking business if a person has taken 2 loans of Rs. 2lakh and Rs. 7.5 lakh and he repays the loan including interest in cash which is more than 2 lakh and asks to settle proportionally for the 2 loans but the repayment for single does not exceed 2 lakh whether bank people can accept that amount in cash?

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4 Replies

Poltu Ghosh (Job) (1865 Points)
Replied 05 July 2017

Section 269ST does not apply to a banking company. Please clarify the nature of the institution carrying on the banking business. Recently CBDT has also excluded NBFC and housing finance companies from sec 269ST with certain rider

Bhargav Ballal C (student) (47 Points)
Replied 05 July 2017

Thanks for your replying
As far as I know depositing money into SB/Current as the case may be, 269ST is not applicable but in case of repayment of loan and such other things 269ST is applicable

Poltu Ghosh (Job) (1865 Points)
Replied 05 July 2017

When the scope of section 269ST does not operate on a banking company it means it does not operate to any transaction with any type of account. Be it SB account or loan account.