17 May 2010
Dear sir. Is there any limit for payment of an open cheque by way of cash to the bearer who is a third party? Whether bankers are obliged to follow or it is the responsibilty of account holder and payee to comply with the regulations, if any? Thanks for responding. TUSHAR KANT PANDEYA tusharkantpandeya@yahoo.com
17 May 2010
Provisions of section 269SS and 269T and 40(3) of income Tax act are applicable in case of bearer cheques too. There is no obligation on the bank under the above sections. Its the duty of the account holder and the payee to comply with the provisions of the above sections
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