Penalties Sections 269T + 271E — Penalty for Cash Repayment of Loan / Deposit ≥ ₹20,000
Sections 269T + 271E — Penalty for Cash Repayment of Loan / Deposit ≥ ₹20,000
Income Tax Act 1961 — 269T / 271E
Penalty equal to the loan/deposit repaid in cash where the amount is ₹20,000 or more.
The Penalty
Equal to the cash amount repaid
- Cap
- Equal to the offending amount
- Calculation base
- Aggregate cash repaid to one person of loan / deposit
- Period
- One-time per default.
When does this apply?
Repaying a loan / deposit of ₹20,000 or more in cash (or by bearer cheque) instead of account-payee cheque / draft / electronic mode.
Calculate this amount
This estimate applies only the rate and caps published in the authored rule for this page.
₹1,00,000Penalty equals the default amount
Worked examples
| Scenario | Calculation | Result |
|---|---|---|
| Repaid ₹1,00,000 director loan in cash | Penalty = ₹1,00,000 | ₹1,00,000 |
How it is levied
Joint Commissioner levies s.271E penalty; s.273B reasonable-cause defence available.
⚠ VERIFY
Confirm the ₹20,000 threshold and that the counterparty is not in an exempted category (government / banking company / listed cooperative bank).