20 January 2016
One of our client have withdrawn chit amount in cash of Rs.3,50,000 for purchase of House(Advance). They need to deposit such amount in their own bank A/c for obtaining Housing Loan & the amount is then transferred to contractor of the House. The Applicant of Loan is an Government Employee. Now the query is.,is there any problem in depositing such amount at a time into the bank. How to account such transaction?
20 January 2016
No, but there should be proper document/ evidence for source of money. You can show chit fund withdrawn under liability monthly contribution can be adjusted against advance money drawn.
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