Banking

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Sai Suryadevara (Querist)
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28 December 2013 Hi Sir,

Our client is a self-employed person.He's having 4 saving bank accounts, and now he's planning to open savings Account in Central Bank of India.Instead he won't maintain much balance in any one of them,
(@MAX: 1 LAC, AVG: 50,000/-) and he pays tax@ NIL, even he has good income.
Can anyone say me the advantages and dis-advantages of having so many Saving Accounts.
And is it good to open another account now in Central Bank of India??

Nikhil Kaushik

Nikhil Kaushik (Expert)
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28 December 2013 this is a case of tax evasion by spreading income over several accounts and not showing the all accounts in your tax computation.

I believe the above answer is sufficient for you to form your own opinion.

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Sai Suryadevara

Sai Suryadevara (Querist)
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29 December 2013 Thanks Sir,

But Transparency is a big problem now, Even we show one savings account in the Tax Return, since every bank Account is Linked to PAN NO. how can Tax be Evased?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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29 December 2013 well are paying tax on the total income? if yes, what purpose is being served by opening several accounts? you yourself said that he is not paying taxes despite good income.

And often accounts are opened stating that PAN is not available and 15G is submitted.

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