Penalty for Repayment of Loans or Deposits by Means Other Than Specified Means
Nature of Default
The penalty shall be imposed on a person who repays any loan, deposit (including interest), or specified advance in cash or any mode prohibited under Section 269T.
Quantum of Penalty
• The Assessing Officer shall impose a penalty equal to the amount of the loan, deposit, or specified advance repaid in contravention.
• Penalty shall not be levied if the assessee proves reasonable cause for the failure.