A individual tax payer had 200000 cash in hand in his books of accounts.
He gave loan of ₹ 200000 in cash to any third person.
Sec 269 SS prohibits that third person to receive loan in form of cash.
Is there any section or any case law which prohibits the person who is giving loan to not to give that loan in form of cash?
Plese reply.
Sections 269T and 269SS: Is there a law against lenders giving cash loans? Query seeks clarification. A tax-related query was raised regarding Sections 269T and 269SS of the Income Tax Act. An individual taxpayer had 200,000 in cash and gave a loan of the same amount in cash to a third party. Section 269SS prohibits the third party from receiving loans in cash. The query asked if there is any legal provision or case law that prohibits the lender from giving loans in cash. The only reply sought clarification on whether the issue was resolved. (AI Summary)
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