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269 SS of Inxcome Tax act.

sanjay soman

Can a Money lender give loan in cash more than ₹ 20000/- or accept repayment repayment of loans more than ₹ 20000/-.If not can NBFC give loan more than ₹ 20000/- in cash.It is learnt that some reknowned finance companies are giving loans against gold more than ₹ 20000/- in cash.They are paying up to ₹ 99999/- in cash.Pl Guide.

Prohibition on cash transactions: cash loans and repayments may be impermissible, raising compliance issues for lenders and borrowers. Prohibition under Section 269SS bars acceptance of loans and repayments in cash beyond the statutory threshold, raising whether moneylenders or NBFCs may give or accept cash loans above that limit and noting instances of finance companies making high-value gold-backed cash loans. (AI Summary)
Income Tax
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