Violation of cash limit transaction

Question Bank › Category: Income Tax › Violation of cash limit transaction
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Kollipara sundaraiah asked 3 months ago

Sir,
It assessess cash loan to relatives rs:10 lacs amount through on cash mode paid dt:10-10-24
After another date:12-12-24
Assessess cash loan  rs:10 lacs amount repayment received from relatives through on bank channel mode
Question:
Assessess above cash loan transaction violation of cash transaction rules of it act

3 Answers
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Amit answered 2 months ago

please refer to link below
 
https://cacube.in/?dwqa-question=is-cash-payment-of-loans-advance-prohibited-under-income-tax-act
 

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Amit answered 2 months ago

The following are the main income tax sections that pertain to cash transaction limit in India:

  • Section 40A(3) and Section 43 – Pertains to Cash Payment
  • Section 269SS and Section 269ST – Pertains to Cash Receipts
  • Section 269T – Pertains to Repayment of Certain Loans / Deposits

As per section 271E, in case of failure to comply with provisions of section 269T, penalty amount equal to the amount of loan or deposit repaid is payable.
 

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Amit answered 2 months ago

Keep record of transaction with reason for cash transaction, if asked for the same in future.

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