03 May 2024
I am running a jewellery business and my blood relative is willing to gift me Rs.6L. From income tax perspective should I receive the money in Current account or Savings account. Why?
03 May 2024
Think about what your current account is for? To account for business entries. A gift is a non business transaction. Hence, you should ideally put it in a saving account. Whether you use it as capital for business purposes later on, is a separate issue.
04 May 2024
Hi Nikhil Kaushik, I have one more doubt. If I were to get loan for business from a blood relative. Which account should I use? and also if the loan was from bank which account should I use? Thanks again..
08 May 2024
You can take the loan in either current or savings accounts as per your convenience. SInce your business is a proprietorship firm, you can account for the loan as business loan even if you receive it in your savings account. The treatment in the books of accounts of business will matter.
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