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Acceptance of public deposits cash/cheque

Tax queries 307 views 2 replies

niraj

Propreitor

31 Points Joined June 2010

An individual is running a gold jewellery business under " proprietorship" and also has Bombay Money-lender's license on his own name.

1. Can this Individual accept "Public Deposits in Cash/Cheque/DD " by doing public advertisements , for business purposes ?

2. Can this Individual accept " Public Deposits in the form of Gold " by doing public advertisements , for business purposes?

Kindly support your answer with government article..

Thanks

Niraj

Replies (2)

Guest

dear niraj as per my opinion it is a kind of advance and need to be received in only a/c payee cheque or draft if the deposit is taken for balance sheet items otherwise u can received it in cash.

regards

tarun rustagi

niraj

Propreitor

31 Points Joined June 2010

dear tarun , I am a official money lender license holder as bombay money lenders license, i lend money to customers, so can i accept public deposits by making public advertisements and pay interest of upto say 9% annum to my depositors