Explanation
Section 269SS of IT Act 1961 (IT Act 2025): any person who accepts a loan, deposit, or specified advance of ₹20,000 or more must accept it only via account-payee cheque, DD, or ECS/bank transfer. Cash acceptance = penalty under §271D equal to the amount. Section 269T: any repayment of loan/deposit of ₹20,000 or more (including interest, if any) must be through banking channels only. Cash repayment = penalty under §271E equal to the amount. Exceptions for both: transactions with the Government, banking companies, RBI, post office savings bank, co-operative banks. Important: the ₹20,000 limit is per-transaction basis, not annual aggregate. CAs must flag these in tax audits (§271D/§271E penalties are common audit findings). Verify on the income-tax portal before filing.