Gift in Savings account or current account for businesses

This query is : Resolved 

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 take it in savings account.

03 May 2024 Why in savings account and not current account because anyway I am going to use the gift for my business.

03 May 2024 By the way thank you for your answer. Pls consider and answer my above question also. Thanks

03 May 2024 And if in savings account I receive huge sum of money will it not be scrutinized by itr... Thanks.

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 Thanks so much. It helped me a lot...

04 May 2024 you are welcome Yogeshvaran:)

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..

04 May 2024 wont make much difference as such. But if you are using funds for business purposes, then better to take in current account only.

04 May 2024 Thanks a lot brother!

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.

16 May 2024 Thanks a lot Puja for your reply...


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