Current account

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

12 September 2015 sir
is there any business law or bank condition that a small shopkeeper (proprietor) or professional must have bank current account instead of savings account for business /professional payments through cheques?

please clarify in detail that when and why current account is needed ?

CA G. SURYANARAYANAN

CA G. SURYANARAYANAN (Expert)
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13 September 2015 Normally as the name implies Savings Bank accounts are intended for encouraging savings and if there are too many transactions involving any business then Banks may not allow the same. For business or professional transactions better to open
Current account.

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Querist : Anonymous

Querist : Anonymous (Querist)

13 September 2015 sir
thanks for reply ,please clarify that i want to do cash deposit about 1.5 lacs per month in my bank ac and cheque payments about 70000 per month should i need current account ?

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Querist : Anonymous

Querist : Anonymous (Querist)

13 September 2015 sir
thanks for reply ,please clarify that i want to do cash deposit about 1.5 lacs per month in my bank ac and cheque payments about 70000 per month should i need current account ?

CA G. SURYANARAYANAN

CA G. SURYANARAYANAN (Expert)
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13 September 2015 Cash deposits exceeding 10 lakhs in aggregate in a financial year are reported through AIR to the central government. So if your deposits and withdrawals are duly accounted you can use the SB A/c. Current account transactions are now reported. So it is safe to handle accountable money through banks.

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Querist : Anonymous

Querist : Anonymous (Querist)

13 September 2015 sir
thanks, this is to inform u that my full money is white ,i do not hide anything.so can i use sb account for my small business transactions ? advise me the final word. thanks again.