Facing tax groan for accepting cash loan

When acceptance or repayment of loans or deposits in cash can invite serious tax trouble

- JIGAR MUKESH PATEL

The next time you accept any loan or deposit in cash, even from your friend or acquaintance, watch out that you do not walk into the tax trap of Sections 269SS and 269T of the Income-tax Act.

The provisions of these two sections got to be introduced to checkmate taxpayers found in possession of cash during search, survey or scrutiny, so that they cannot mischievously wriggle out from the Taxman's clutches by explaining the source of their unaccounted moneys as having been received from someone by way of cash loan or deposit.