Current account
This query is : Resolved
25 September 2014
is there is any restriction of recieving buisiness income in saving account or there is any linit of max amount recieved in savings account
25 September 2014
business income cannot and should not be deposited in savings account but current account.
25 September 2014
No, there is no any limit.
25 September 2014
Dear Tushar,
A sole proprietor can have savings account and can receive any amount of income in savings account, there is no limit.
A sole proprietor can have savings account and can receive any amount of income in savings account, there is no limit.
Message likes :
1 times
25 September 2014
but then sec 80TTA will not allowed as deduction so better open a current account
Message likes :
1 times
25 September 2014
what are the charges to register firm as sole proprietor
25 September 2014
Dear Tushar,
What about 80TTA deduction if there is no savings account at all..!!
If one has option to open either savings or current account then it will always be better to have savings account, as one can receive interest and minimum balance requirement can be less in savings account as compared to current account.
What about 80TTA deduction if there is no savings account at all..!!
If one has option to open either savings or current account then it will always be better to have savings account, as one can receive interest and minimum balance requirement can be less in savings account as compared to current account.
25 September 2014
where it is written that for sole prop business savings accounts is allowed?
25 September 2014
where it is written that for sole prop business savings accounts is allowed?
25 September 2014
A sole proprietor can have savings account in his Personal Name.
25 September 2014
if there is no limit then wyh people donot use saving account if there are not more transactions
25 September 2014
agreed but should not use them for bsuiness purpose as for that current account is meant.
25 September 2014
where it is written that for sole prop business savings accounts is allowed?
25 September 2014
Dear Tushar,
As far as my knowledge is concerned, for registration of Sales Tax, CST etc. current account is mandatory.
As far as my knowledge is concerned, for registration of Sales Tax, CST etc. current account is mandatory.
25 September 2014
no u can ask any bank account current is meant for business purpose only adn thats the reason all business entity including sole prop have currenrt account.
25 September 2014
Dear Tushar,
I don't think anywhere it is mentioned that a sole proprietor can not have savings account for business purpose.
I don't think anywhere it is mentioned that a sole proprietor can not have savings account for business purpose.
25 September 2014
then while u open bank account u can see the terms and conditions u may get the clarification
25 September 2014
Dear Tushar,
Please go through the all conversation above carefully, nowhere I have said that current account is not for business. Here we are discussing about applicability of savings account.
Please go through the all conversation above carefully, nowhere I have said that current account is not for business. Here we are discussing about applicability of savings account.
25 September 2014
i want to recieve buisiness income of around 70-80k per month then can i use saving account for that
25 September 2014
Yes Jatin you can use savings account.
25 September 2014
so from discussion i under stand that if any one doesnot have too much transaction in bank (cash deposit or withdrawl)then he can use saving account for it otherwise current account just for smooth operations
26 September 2014
dear all please note that:
1. Tushar appears to be correct on this. RBI Guidelines dont permit buiness concerns (including proprietors) to open saving bank account. While I am unable to locate the exact circular. But the rules posted on various banks' website clarify this point in black and white. please refer http://www.iob.in/uploads/Saving%20Bank%20Rules.pdf
and http://www.icicibank.com/Personal-Banking/account-deposit/special-savings-account/eligibility.page
Further, where restriction on opening saving bank account is placed by any specific regulations other than RBI, the banks dont permit opening of saving accounts in such cases too. For eg, Societies Act doesn't permit opening of saving bank account. So recently SBI has ordered closure of saving accounts of various societies. You may refer http://articles.economictimes.indiatimes.com/2014-09-16/news/53983604_1_sbi-official-sb-accounts-arundhati-bhattacharya
2. However, institutionalized saving accounts are permitted under RBI guidelines. But for limited purposes to specific entities. Institutional Savings Account are offered to Trust, Association, Society, Club, NGO, Charitable Hospital, Educational Institute, Section 25 companies.
3. However, you may find enough caselaws with mention of proprietors having saving bank account. For eg Devender Kumar, New Delhi vs Department Of Income Tax (ITA No.2990/DEL/ 2012(Assessment Year : 2007-08 ) Thus, tax authorities don't care whether you got saving or current account.
4. The issue of 80TTA etc therefore, becomes, inconsequential in nature. For eg, I do receive a lot of fee income in my saving account. 80TTA cannot be denied on the grounds that business income was received in this account.
1. Tushar appears to be correct on this. RBI Guidelines dont permit buiness concerns (including proprietors) to open saving bank account. While I am unable to locate the exact circular. But the rules posted on various banks' website clarify this point in black and white. please refer http://www.iob.in/uploads/Saving%20Bank%20Rules.pdf
and http://www.icicibank.com/Personal-Banking/account-deposit/special-savings-account/eligibility.page
Further, where restriction on opening saving bank account is placed by any specific regulations other than RBI, the banks dont permit opening of saving accounts in such cases too. For eg, Societies Act doesn't permit opening of saving bank account. So recently SBI has ordered closure of saving accounts of various societies. You may refer http://articles.economictimes.indiatimes.com/2014-09-16/news/53983604_1_sbi-official-sb-accounts-arundhati-bhattacharya
2. However, institutionalized saving accounts are permitted under RBI guidelines. But for limited purposes to specific entities. Institutional Savings Account are offered to Trust, Association, Society, Club, NGO, Charitable Hospital, Educational Institute, Section 25 companies.
3. However, you may find enough caselaws with mention of proprietors having saving bank account. For eg Devender Kumar, New Delhi vs Department Of Income Tax (ITA No.2990/DEL/ 2012(Assessment Year : 2007-08 ) Thus, tax authorities don't care whether you got saving or current account.
4. The issue of 80TTA etc therefore, becomes, inconsequential in nature. For eg, I do receive a lot of fee income in my saving account. 80TTA cannot be denied on the grounds that business income was received in this account.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- ITC temporary reversal and reclaim
- GST on export of services and Input Credit
- Applicable TDS rate for sale of property in Nov 2024
- Inventory of finished goods
- GST ON EXPORT COMMISSION
- RCM INVOICING FROM NOV-2024
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- ITC EXCESS CLAIM + RCM NOT PAID...BOTH FOR FY 2020-21......PAID IN FY 2024-25....EFFECT
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding einvoice taken on nil rated sales
Trending Online Classes
CAclubindia
