Gift in Savings account or current account for businesses
This query is : Resolved
03 May 2024
I am running a jewellery business and my blood relative is willing to gift me Rs.6L. From income tax perspective should I receive the money in Current account or Savings account. Why?
03 May 2024
take it in savings account.
03 May 2024
Why in savings account and not current account because anyway I am going to use the gift for my business.
03 May 2024
By the way thank you for your answer. Pls consider and answer my above question also. Thanks
03 May 2024
And if in savings account I receive huge sum of money will it not be scrutinized by itr... Thanks.
03 May 2024
Think about what your current account is for? To account for business entries. A gift is a non business transaction. Hence, you should ideally put it in a saving account. Whether you use it as capital for business purposes later on, is a separate issue.
04 May 2024
Thanks so much. It helped me a lot...
04 May 2024
you are welcome Yogeshvaran:)
Message likes :
1 times
04 May 2024
Hi Nikhil Kaushik,
I have one more doubt.
If I were to get loan for business from a blood relative. Which account should I use? and also if the loan was from bank which account should I use? Thanks again..
I have one more doubt.
If I were to get loan for business from a blood relative. Which account should I use? and also if the loan was from bank which account should I use? Thanks again..
04 May 2024
wont make much difference as such. But if you are using funds for business purposes, then better to take in current account only.
04 May 2024
Thanks a lot brother!
08 May 2024
You can take the loan in either current or savings accounts as per your convenience. SInce your business is a proprietorship firm, you can account for the loan as business loan even if you receive it in your savings account. The treatment in the books of accounts of business will matter.
16 May 2024
Thanks a lot Puja for your reply...
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
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- ITC temporary reversal and reclaim
- TDS U/S. 194NF
- GST on export of services and Input Credit
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- Applicable TDS rate for sale of property in Nov 2024
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- MIS MATCH OF INVOICE NUMBER
- VERIFICATION OF REFUND RELATED
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
Trending Online Classes
CAclubindia
