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Unsecured loans 40000

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Surinder

Assistant

362 Points Posted on 09 May 2021

Dear Sir

can we received 40000/- unsecured loan in cash from 2 person twenty thousand per person in sepreate date.its allowable to us

Replies (5)

Quick Summary

This discussion addresses whether it's permissible to receive a £40,000 unsecured loan in cash, split into two £20,000 payments from different individuals. The Income Tax Act states that cash loans exceeding £20,000 are not allowed and can incur a penalty equal to the loan amount. Therefore, receiving such a sum in cash is not permissible under current regulations.

Ayush Chaudhary

25 Points Posted on 09 May 2021

Yes. Allowed

Rama chary Rachakonda

Master in Accounts & high court Advocate

9620 Points Posted on 09 May 2021

Yes. allowed. Under the Income Tax Act, loans of more than Rs 20,000, even from family members, cannot be taken in cash or bearer cheque. Breach of this provision (269SS) of the Act attracts a penalty that matches the loan amount under section 271D.