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Cash withdraw by proprietor

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This query is : Resolved

Quick Summary

As a sole proprietor, you can generally withdraw any amount of cash from your business as needed, as it's your own funds. There are no specific limits set by law for personal withdrawals. However, be aware that banks are required to report large cash withdrawals, such as those exceeding £10 lakh, to the Income Tax department.

Sunil Kumar

Sunil Kumar (Querist)

16 September 2020 how much cash can a proprietor able to withdraw from business in a financial year and a single day

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

16 September 2020 No limits as no other person is involved. It's his business fully owned by him. It's like withdrawal of cash from his bank account.

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)

16 September 2020 Proprietor can withdraw the amount from your SB or CA by way of cash as and when you require. There will be no problem. But banker will furnish the details of large amount of cash withdrawals I.e more than 10 lakh to Income tax department as statement of Financial Transaction report by Banker

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