PROACTIVE------QUALITY ------TRUST------REACHABLE------DYNAMIC------STANDARD------HANDHOLDING------PENNYWORTH------PROFESSIONALISM------RESPONSIVE------VALUE CHAIN. Ponder carefully - while Accepting or Repaying Loan or Deposit of Rs. 20,000 or More In Cash - JATIN RATHOR ASSOCIATES
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Ponder carefully – while Accepting or Repaying Loan or Deposit of Rs. 20,000 or More In Cash

To curb the generation of black money by way of dealing in cash in immovable property transactions, the Finance Act 2015 has prohibited – “ No person shall take or accept from any other person – Any Loans or Deposits of Rs 20,000 or More in cash.

According to section 269SS, it is very much clear that any assessee cannot take loan or deposit from any person of Rs. 20,000 or more in cash, in other word it is to be received by account payee cheque or account payee bank draft or any electronic mode. It has also been clarified that at the time of taking loan or deposit or making payment of loan or deposit, if any amount is outstanding in his account, this is to be considered

This section will not apply to Government, Bank, Post Office Saving Bank account, Co-Operative Bank, Government Company or any institution approved by the Government. This section is applicable to Individual, Hindu Undivided Family, Firms, and Companies.

Penalty for Contravention under section 271 D :  Liable to pay, by way of penalty, a sum equal to the amount of the loan or deposit or specified sum so taken or accepted.

ILLUSTRATION: In the books of account of assesse Rs. 12,000 is credited in the name of Mr. A, on 1st April, 2022. Now if an assesse wants to take Rs. 5,000 in cash, on 1st September, 2022, he can, because total amount is less than Rs. 20,000. Thereafter on 1st November, 2022 assesse wants to take Rs. 4,000 in cash he cannot, because after adding Rs. 4,000 in the account of Mr. A it cross the limit of Rs.20,000.

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