legal debt u/s 138 N.I.Act

chandan (Querist) 27 June 2008 This query is : Resolved
loan above 20,000/- given in cash is prohibated in income tax act & whether loan amount above 20,000/- given in cash is legally recoverable debt u/s 138 N.I.Act, pls. also quote relevent case laws.

Follow Query

Report Abuse

Srinivas.B.S.S.T (Expert) 27 June 2008
Yes Loan above 20,000/- given in cash is a penal offence under IT act but in NI act the crux is issuance of a cheque without sufficient funds in the account but not for recovery of money so the point to be considered is whether there is a debt and in the discharge of the same the cheque issued or not.

KamalNayanSaxena (Expert) 28 June 2008
Loan above 20,000/- given in cash is prohibited under IT Act doesn't meant that it is not legally recoverable debt.

If cheque is issued in discharge of debt and is returned unrealised, Section 138 of NI Act shall be invoked.

SROTAS -Global Legal Services (Expert) 29 June 2008

yes you can recover the loan amount above Rs.20,000/-. but you have to show the statements of accounts for having paid that amount and you can invoke section 138 of N.I. Act,only when he has given the cheque for repayment of secured loan

arunprakaash.m. (Expert) 30 June 2008
Yes it is legally enforceable. Dispute with IT dept is different matter.

Guest (Expert) 30 June 2008
Loan or deposit of more than rs.20000/- is prohibited under section 269SS of IT Act, if the same is paid or received otherwise than by a crossed cheque.

It operates only against assessee. The action under IT ACt has nothing to do with the civil consequences between the parties.

It has nothing to civil consequences.

Previous

Next

You need to be the querist or approved LAWyersclub expert to take part in this query .

Click here to login now

Similar Resolved Queries :

Ask Query
Unanswered Queries