cash loan

snpathak (Querist) 24 July 2010 This query is : Resolved
can any person accept cash loan rs.20000/=

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Devajyoti Barman (Expert) 24 July 2010
Yes

Parthasarathi Loganathan (Expert) 26 July 2010
But get a DPN executed duly witnessed alonwith terms and conditions of the borrowings.

AMIT BAJAJ ADVOCATE (Expert) 27 July 2010
As per provisions of section 269SS of Income Tax Act loan of Rs 20000 or more cannot be accepted otherwise than by an account payee cheque or account payee draft. cash loan of Rs 20000 will be violation of section 269SS and penal provisions may be attracted u/s 271D in such case.
Can refer to the following article for more

http://amitbajajadvocate.blogspot.com/2010/03/provisions-of-section-269ss-and-269t.html