You can reimburse your credit add-up to any HFC (Housing money organization) or NBFC (Non-banking account organization) in real money, given each advance portion is not as much as Rs 2 lakh.
The government, in its recent budget, introduced Section 269ST. This section, aimed at promoting the digital economy, prohibits cash transactions exceeding Rs.2 lakh.
Area 269ST forbids any individual to get a measure of Rs.2 lakh or more in real money:(I) In total from an individual in a day, or
(ii) In a solitary exchange, or
(iii) In regard to exchanges identifying with one occasion or event from an individual.
In the wake of presenting this area, different portrayals were sent by NBFCs and HFCs with regards to whether the constraint of Rs.2 lakh will apply to one portion of advance reimbursement or for the entire measure of such reimbursement.
In the case of loan repayments to NBFCs or HFCs, the tax department has clarified that a single instalment will be considered a single transaction. Therefore, if the instalment amount is less than Rs.2 lakh, it can be paid in cash. The total amount of all instalments will not be considered to determine the applicability of the Rs.2 lakh limit.
Rejections from the extent of area 269ST
This area won’t have any significant bearing too-
Government
any financial organization
post office investment funds bank
co-usable bank
different people/receipts as might be informed
Exchanges alluded to in segment 269SS (pulled in when we acknowledge a credit from any individual) will be avoided from the extent of the new segment 269ST.
Models:
a. In the event that one sells products worth Rs 4,50,000 through three unique bills of Rs.150,000 each to one individual and acknowledges money in 1 single day on various occasions, at that point, area 269ST(a) will get abused.
b. In the event that one sells products worth Rs 500,000 through a solitary bill to someone else and gets the money of 2,50,000 on day one and another 2,50,000 on day two at that point, area 269ST(b) will get disregarded.
c. ABC acknowledges the request for cooking, design and tent for the marriage occasion of XYZ. He believes the money of Rs.1,00,000 for providing food, Rs 1,50,000 for design, and Rs.1,50,000 for tent work at that point, segment 269ST(c) will get disregarded regardless of whether money is acknowledged on various dates. All the money exchanges identified with a similar event, the marriage of Y.
In all three cases, segment 269ST gets disregarded, and punishment u/s 271DA is relevant.
Presentation of Penal Provisions
The government has also introduced penalty provisions for violations of Section 269ST. If an individual receives an amount in cash exceeding the specified limit of Rs.2 lakh, they are liable to pay a penalty equal to the amount received in cash. Therefore, it is crucial to ensure that you do not receive cash of Rs.2 lakh or more in a single transaction, total from an individual in a day, or in relation to transactions related to one event or occasion from an individual.
(According to the CBDT roundabout no 22/2017 dated third July 2017)