A Co-operative credit society disburse a loan of Rs.1,00,000/- to his member by cheque. The same member of society who has taken loan from society was partly repay the loan to the society for Rs.50,000/- in cash. The society has accept the amount in cash. Is the society has made contravention of Section 269SS of IT Act ? As per my information contravention u/s 269SS is made only when amount of deposit or loan accepted in cash & not at the time of acceptance of repayment of loan.
Please guide me.
Co-operative society's cash acceptance of loan repayment doesn't violate Section 269SS; Section 269T governs repayments. A co-operative credit society disbursed a loan of Rs. 1,00,000 to a member by cheque. The member partially repaid Rs. 50,000 in cash, which the society accepted. The query raised was whether this action contravened Section 269SS of the Income Tax Act, 1961. The response clarified that Section 269SS pertains to the acceptance of loans or deposits in cash, not the repayment. Instead, Section 269T addresses the repayment of loans and deposits, suggesting no contravention occurred in this scenario. (AI Summary)
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