Is there any penalty for someone who gives loan to others in cash ?
4 years ago
I know that there is 100% penalty for someone who receives loan of 2 lakhs in cash because it is illegal to receive loan of amount more than 20000 rupees in cash . But i want to ask you, is there any penalty on someone who gives loan of 2 lakhs to other in cash ? I mean , what the penalty on someone who gives loan of 2 lakhs in cash ?
Ayantika Mondal @ Prime Legal
Responded 4 years ago
A.Hi,
Every case and fact is different, we need to understand more before we place our opinion, however the law speaks as below:-
With effective from 1st April, 2017, no person shall receive an amount of Rs 2 Lakh or more;
(A) in aggregate from a person in a day (or)
(B) in respect of a single transaction (or)
(C) in respect of transactions relating to one event or occasion from a person.
Penalty- Kindly note that Penalty u/s 271DA will be imposed on a person who receives a sum of Rs 2 Lakh and above in cash. The extent of penalty will be a sum equal to the amount of such receipt.
Every case and fact is different, we need to understand more before we place our opinion, however the law speaks as below:-
With effective from 1st April, 2017, no person shall receive an amount of Rs 2 Lakh or more;
(A) in aggregate from a person in a day (or)
(B) in respect of a single transaction (or)
(C) in respect of transactions relating to one event or occasion from a person.
Penalty- Kindly note that Penalty u/s 271DA will be imposed on a person who receives a sum of Rs 2 Lakh and above in cash. The extent of penalty will be a sum equal to the amount of such receipt.
Helpful
Helpful
Share
A.Dear Sir,
Same principle applies. But you must establish the same and it should not be a an isolated transaction and he must be doing money lending business continuously. You can lodge complaint with concerned department and also with Collector of the District and even with police and RBI etc.
Please give me Rank 5
Same principle applies. But you must establish the same and it should not be a an isolated transaction and he must be doing money lending business continuously. You can lodge complaint with concerned department and also with Collector of the District and even with police and RBI etc.
Please give me Rank 5
Helpful
Helpful
Share
Read Related Answers
TDS deduction for one time expert advisory
Dear Client,
According to Section 194J of the Income Tax Act, any person (other than an individual or a Hindu Undivided Family) making payment to a resident for professional or technical services is r...
Captain gain tax
Dear Client,
The Capital Gains Account Scheme was introduced in 1988 by the Central Government. It is a Fixed Deposit account with a Bank which can be utilized only for the purpose of the exemption cl...
Income Tax Refund
Dear Client,
There are certain criterias for getting your TDS, firstly your relationship status- if you are married then higher rate may be deducted, additionally if you have overpaid other taxes or...
Joint buyers in under construction property, help with 26QB
Dear Client,
TDS is applicable on the purchase of immovable property wherein the sale consideration of the property exceeds or is equal to ₹ 50,00,000 (Rupees Fifty Lakhs). TDS @ 1% should be deducted...
Amount paid to a friend as drawings from a Propritory Business Concern
Dear Client,
A business account in a Bank typically known as a Current account is a kind of bank account maintained by businessmen, corporations and trusts who have a large number of transactions. A...
Read Blogs on Tax
Tax Lawyers
Find Lawyers by Location
