Brief me about the loans and advances are accepted or repaid in cash
Asked By: gopi ekambaram
According to section 269 SS and 269 T of the Income Tax Act the taxpayer cannot accept or repay the loan in cash exceeding Rs. 20,000/-. If the taxpayer has accepted or repaid loan in cash exceeding 20,000/- then the auditor has to report the same in tax audit report. If it comes to the notice of Income Tax officer then he may levy penalty. If loan acceptor or donor both are farmers and their receipts are not taxable according to Income tax Act then above provision is not applicable to them. If the loan accepted is more than Rs. 20,000/- then repayment cannot be made in cash.