Director Suspense

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This discussion clarifies the limits for a director's suspense account, also known as an imprest account, in a Private Limited company. It confirms that there is no specific limit to the balance maintained in such an account. However, it's crucial to adhere to cash payment restrictions outlined in the Income Tax law, such as the limit of £10,000 per person per day for expenses.

sankar ponnan

sankar ponnan (Querist)
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25 November 2021 Sir / Mam

In a Pvt Ltd co, there is any limit to a director for maintaining his suspense account?

please reply

thanks in adv

Manish

Manish (Expert)
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25 November 2021 What are you referring to as 'Suspense account'?
Are you talking about the imprest account?

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sankar ponnan

sankar ponnan (Querist)
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25 November 2021 Yes sir regarding Imprest Account...

Manish

Manish (Expert)
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25 November 2021 There is no limit to maintaining imprest balance.
Just follow payment limits in cash given under Income Tax law, e.g., 10,000 of expense to a person in a day.

sankar ponnan

sankar ponnan (Querist)
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26 November 2021 Thank You so much sir

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