Penalties Sections 269SS + 271D — Penalty for Cash Loan / Deposit / Advance ≥ ₹20,000
Sections 269SS + 271D — Penalty for Cash Loan / Deposit / Advance ≥ ₹20,000
Income Tax Act 1961 — 269SS / 271D
The Penalty
Equal to the cash amount accepted
- Cap
- Equal to the offending amount
- Calculation base
- Aggregate cash accepted from one person as loan / deposit / specified sum
- Period
- One-time per default.
When does this apply?
Accepting loan / deposit / specified sum (including for immovable property) of ₹20,000 or more otherwise than by account-payee cheque, bank draft, or electronic mode.
Calculate this amount
This estimate applies only the rate and caps published in the authored rule for this page.
Worked examples
| Scenario | Calculation | Result |
|---|---|---|
| Received ₹5,00,000 in cash for property advance | Penalty = ₹5,00,000 | ₹5,00,000 |
How it is levied
Joint Commissioner levies s.271D penalty. Reasonable-cause defence u/s 273B available; genuine hardship / no-benami intent must be established.
Confirm the ₹20,000 threshold has not been changed and that no exempted-transaction sub-clause covers the specific counterparty (government / banking company / listed cooperative bank). For tax year 2026-27 onward: confirm ₹20,000 threshold under s.185, ITA 2025.