Sole proprietorship bank ac

Can a sole proprietor open a joint savings ac with his wife for all business transactions. while his wife is the first ac holder and the proprietor himself is the second ac holder. what action can be taken against him by the IT Dept.
Replies (1)

1. Savings accounts are for personal savings and drawings/investment, any business transactions are not allowed through it.

2. First holder is treated as the owner of the account and any transactions carried in the account will be treated as his/her own transaction. In your case, all the transactions of the account will be reflected in her PAN, so she will be responsible for it and not yourself.

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