Understanding Section 269SS and Section 269T: Repayment of Loan

Section 269SS - Loan Acceptance: Prohibits individuals from accepting loans, deposits, or specified sums of INR 20,000 or more in cash. Applies to individual transactions and cumulative totals. Outstanding amounts of INR 20,000 or more from previous cash transactions are included.

Exceptions to Section 269SS: Government bodies, banking institutions, and entities established by law are exempt. Agricultural income earners, emergency situations involving cash from relatives, and cash capital contributions by partners in a firm are also exempt. Penalty for Violation: Penalties can amount to 100% of the loan or deposit received in cash, imposed by the assessing officer.

Section 269T - Loan Repayment: Mandates repayment exceeding INR 20,000 through specific banking channels like cheques or electronic transfers. Applies to individual transactions and cumulative loan amounts exceeding INR 20,000.

Exceptions to Section 269T: Government institutions, banking companies, co-operative banks, and other notified entities are exempt. Repayments to government companies and corporations established by legislative acts are also exempt. Penalty for Violation: Non-compliance attracts a penalty of 100% of the loan or deposit amount, enforced by the assessing officer.