Repayment of loan - Conditions of section 269SS / 269T

[Common Issues]

Assessee has taken loan in earlier year was Rs. 22000/- through cheque.

Assessee has paid part in cash Rs. 3000/- in the year 2009-10. This fact was reported  in the tax audit report. Now in the year 2010-11 he paid the balance amounting to Rs. 19000/- in cash.

Whether this facts are required to be reported in the form 3CD regarding payment of loan made against cash?

Whether in the second year, assesse would be held as defaulter being payment in contravention of   Section 269SS/ 269T

AI Summary

Cash Loan Repayment Under Rs. 20,000 Not Required to be Reported in Form 3CD, No Contravention Found An assessee took a loan of Rs. 22,000 via cheque, repaying Rs. 3,000 in cash during 2009-10, which was reported in the tax audit. In 2010-11, the remaining Rs. 19,000 was paid in cash. The discussion focuses on whether these cash repayments need to be reported under Form 3CD due to potential contravention of Sections 269SS/269T. Responses indicate no contravention occurred, as the outstanding loan was below Rs. 20,000, and reporting is unnecessary once the loan amount falls below this threshold.