Cash loan above Rs 20,000 can put Covid-hit families in legal tangle
Section 269SS of the Income Tax Act, 1961 bars receipt of Rs 20,000 or more in cash as loan or deposit by an individual from another individual
Ashutosh Kumar | May 14, 2021 | Updated 13:08 IST
Mumbai-based Vishal Gupta, who lost his father to Covid-19 in May last year, faces a new challenge. Gupta's family paid over Rs 9 lakh for the treatment of his father, out of which a majority amount was raised from friends and relatives. A part of the financial help they received was in the form of cash.
A social worker who helped the family hospitalise the patient last year recently apprised them of tax provisions that prohibit cash transactions among individuals as loan over a certain limit. Now the family of three brothers, employed in unorganised sector, fears being harassed by tax authorities.