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Dhara (Manager)     15 December 2013

Cash payment at bank

Dear Sir,

When customer goes to Bank and asks for closure of FD and cash payment, Bank denies for cash payment above Rs 20000/- as per Income tax Rules.

If a person raises a loan on his deposit  for Rs 120000/-, The loan is for Rs 100000/-, Can he withdraw the loan proceeds in cash from Bank. 

In the Bank circular, it  is unclear.Please clarify, in which circular it prevents the cash payment in Loan also above Rs 20000/-.

Muralidhar



Learning

 3 Replies

Sudhir Kumar, Advocate (Advocate)     15 December 2013

state full facts

Vineet (Director)     16 December 2013

As per section 269SS and 269T of income tax act, no loan or deposit above Rs 20,000/- can be accepted or repaid in cash except certain special circumstances as mentioned the relevant sections.

R RAJAGOPALAN (ADVOCATE)     17 December 2013

YOUR QUERY: In which circular it prevents the n which circular it prevents the cash payment in Loan also above Rs 20000/-..

Section 269T of the Income Tax Act bars the Bank. You can withdraw the money from your SB Account!


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