BooksIQNo person can REPAY any loan, deposit, or specified advance of ₹20,000 or more in cash — repayment must come through account-payee cheque, demand draft, banking channel, ECS, or a prescribed digital mode.
Key points
- §269T is the mirror provision of §269SS — it governs REPAYMENT rather than acceptance.
- The threshold remains ₹20,000 in cash, either singly or in aggregate considering any existing outstanding balance.
- Permitted modes match §269SS: account-payee cheque, demand draft, banking channel, or any prescribed digital mode.
- The penalty under §271E is 100% of the loan or deposit repaid in violation.
- Carve-outs mirror those of §269SS — the same government and banking entities are excluded.
- A common trap is when directors or partners ask the company or firm to repay their own loans in cash — the penalty falls on the recipient entity (the company or firm), not the partner.
Reference: §269T, ITA 1961 — under ITA 2025 (FY 26-27 onwards), this is §188
This page is general information for Indian businesses, current as of the
financial year shown above — not legal or tax advice. Tax law changes,
and how a provision applies depends on your specific facts. Confirm the
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