Limit of Section 269SS and 269T enhanced - Budget 2023

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Sections 269SS and 269T deal with limitations on taking out and repaying cash loans that are greater than Rs 20,000 per year. It also stipulates a fine in case a loan transaction in cash is done in excess of Rs. 20,000 per annum.



This limit is enhanced to Rs. 2 lakhs per annum in Budget 2023. This enhanced limit is applicable only to

Ø Primary agricultural credit society

Ø Primary co-operative agricultural

Ø Rural development bank

 

As a result, there won't be any penal consequences under section 269SS if a deposit is accepted by these entities from its members and the amount of the deposit is less than Rs. 2 lakhs per annum.

Additionally, if a loan is taken from these entities by its members and the amount of the deposit or loan is less than Rs. 2 lakhs per annum, there won't be any penal consequences under section 269SS.

  

Furthermore, there won't be any penal consequences under section 269T, if a deposit is repaid back in cash by these entities to its members and the amount of the deposit is less than Rs. 2 lakhs per annum,

Additionally, if a loan is repaid back in cash by these entities to its members and the amount of loan is less than Rs. 2  lakhs per annum, there won't be any penal consequences under section 269T.

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