The Statutory Brief

IT Act 1961 → 2025 / Section 269SS

Cash transactions

Section 269SS → Section 185

No cash loans, deposits or specified sums of ₹20,000 or more

Section 269SS of the old Income-tax Act, 1961 · new section 185 under the Income-tax Act, 2025

New reference Section 185 (repayment, old 269T → 188, 189)

Income-tax Act, 1961Section 269SS

  • Loans, deposits or specified sums (property advances) of ₹20,000 or more only by account payee cheque/draft or electronic mode
  • Aggregate with outstanding balance from the same person
  • ₹2 lakh limit for primary agricultural credit societies' members
  • Penalty equal to the amount (271D)

Applies to FY 2025-26 (AY 2026-27) and earlier years.

Income-tax Act, 2025Section 185 (repayment, old 269T → 188, 189)

  • Same rule, now section 185
  • ₹20,000 limit including unpaid balance (185(1)(i)–(iii))
  • Exceptions for Government, banks, Government companies, notified bodies; both parties with only agricultural income
  • Repayment restriction (old 269T) is in sections 188 and 189

Applies from tax year 2026-27 (from 1 April 2026).

What changed

Renumbered; limits and exceptions unchanged.

Practice notes

  • 'Specified sum' covers advances for transfer of immovable property.
  • The penalty for contravention sits in the penalties chapter; verify the section before quoting.

These are summaries, not the statutory text. Read the bare Act for both sections on the Income Tax Department's official site, which also has a side-by-side comparison utility.

Frequently asked

What is the cash loan limit under the new Income Tax Act 2025?

₹20,000 — loans, deposits or specified sums of ₹20,000 or more (including any unpaid balance) must be taken by account payee cheque, draft or electronic mode (section 185).

What is section 269SS called in the new Income-tax Act, 2025?

Section 269SS of the Income-tax Act, 1961 corresponds to Section 185 (repayment, old 269T → 188, 189) of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).

What changed in section 269SS under the new Income Tax Act?

Renumbered; limits and exceptions unchanged.

Is section 269SS still applicable for FY 2025-26?

Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 269SS of the 1961 Act. Section 185 (repayment, old 269T → 188, 189) of the 2025 Act applies from tax year 2026-27.

Related sections

269ST→186No cash receipt of ₹2 lakh or more68→102Unexplained cash credits in the books of account40A(3)→36Disallowance of cash expenses above ₹10,000 a day (and related-party payments)