Please can any one give your answers/rectifications on my below query.
We have deposited cash to our co (our co is pvt ltd) OD A/c for Rs. 3lacs, whether it's attracts any taxes as per companies act or what is the cash limit to deposit, but we have the cash balance in our books.
18 July 2024
As per the guidelines issued by the Reserve Bank of India (RBI), there are certain limits and regulations regarding cash deposits into current accounts or overdraft (OD) accounts. Here are the key points:
1. **Cash Transaction Limit**: Cash deposits in a bank account (current or OD account) are subject to certain limits to discourage cash transactions and promote digital payments. As of now, the applicable limits are: - For cash deposits in a current account or OD account, the limit is Rs. 10 lakh per month per account holder. - Any cash deposit exceeding Rs. 10 lakh in a month may attract scrutiny and may require additional documentation to be provided to the bank.
2. **Purpose of the Transaction**: Banks may also require customers to provide the purpose of such large cash deposits to ensure compliance with Anti-Money Laundering (AML) guidelines and Know Your Customer (KYC) norms.
3. **Documentation Requirements**: Banks may ask for supporting documents, such as invoices, bills, or other evidence of the source of cash, especially for deposits exceeding Rs. 10 lakh.
4. **Penalties for Non-Compliance**: Non-compliance with these guidelines can lead to penalties or adverse action from the bank or regulatory authorities.
It's important to note that these limits and guidelines are subject to change as per RBI regulations and may vary based on the specific circumstances or directives issued by individual banks. Therefore, it's advisable to check with your bank for the most up-to-date information and any specific requirements they may have regarding cash deposits into current or OD accounts.
18 July 2024
As per the guidelines issued by the Reserve Bank of India (RBI), there are certain limits and regulations regarding cash deposits into current accounts or overdraft (OD) accounts. Here are the key points:
1. **Cash Transaction Limit**: Cash deposits in a bank account (current or OD account) are subject to certain limits to discourage cash transactions and promote digital payments. As of now, the applicable limits are: - For cash deposits in a current account or OD account, the limit is Rs. 10 lakh per month per account holder. - Any cash deposit exceeding Rs. 10 lakh in a month may attract scrutiny and may require additional documentation to be provided to the bank.
2. **Purpose of the Transaction**: Banks may also require customers to provide the purpose of such large cash deposits to ensure compliance with Anti-Money Laundering (AML) guidelines and Know Your Customer (KYC) norms.
3. **Documentation Requirements**: Banks may ask for supporting documents, such as invoices, bills, or other evidence of the source of cash, especially for deposits exceeding Rs. 10 lakh.
4. **Penalties for Non-Compliance**: Non-compliance with these guidelines can lead to penalties or adverse action from the bank or regulatory authorities.
It's important to note that these limits and guidelines are subject to change as per RBI regulations and may vary based on the specific circumstances or directives issued by individual banks. Therefore, it's advisable to check with your bank for the most up-to-date information and any specific requirements they may have regarding cash deposits into current or OD accounts.
18 July 2024
As per the guidelines issued by the Reserve Bank of India (RBI), there are certain limits and regulations regarding cash deposits into current accounts or overdraft (OD) accounts. Here are the key points:
1. **Cash Transaction Limit**: Cash deposits in a bank account (current or OD account) are subject to certain limits to discourage cash transactions and promote digital payments. As of now, the applicable limits are: - For cash deposits in a current account or OD account, the limit is Rs. 10 lakh per month per account holder. - Any cash deposit exceeding Rs. 10 lakh in a month may attract scrutiny and may require additional documentation to be provided to the bank.
2. **Purpose of the Transaction**: Banks may also require customers to provide the purpose of such large cash deposits to ensure compliance with Anti-Money Laundering (AML) guidelines and Know Your Customer (KYC) norms.
3. **Documentation Requirements**: Banks may ask for supporting documents, such as invoices, bills, or other evidence of the source of cash, especially for deposits exceeding Rs. 10 lakh.
4. **Penalties for Non-Compliance**: Non-compliance with these guidelines can lead to penalties or adverse action from the bank or regulatory authorities.
It's important to note that these limits and guidelines are subject to change as per RBI regulations and may vary based on the specific circumstances or directives issued by individual banks. Therefore, it's advisable to check with your bank for the most up-to-date information and any specific requirements they may have regarding cash deposits into current or OD accounts.
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