Payment to Vendors
This query is : Resolved
Gurvinder Singh
(Querist)
10 January 2025
Hello Sir,
Can a person make payment to vendor from his savings account, if he is proprietor. Please advise.
Thanks
Gurvinder Singh
Can a person make payment to vendor from his savings account, if he is proprietor. Please advise.
Thanks
Gurvinder Singh
Dhirajlal Rambhia
(Expert)
10 January 2025
While it is common for proprietors to eventually open a separate business account for better financial management, organization, and tax purposes, there's no legal requirement to do so initially. Therefore, using a personal savings account for business payments is acceptable. Although it's legally permissible, for clarity, organization, and professional management, it's advisable to consider opening a separate business account. This can help in tracking business expenses, managing cash flow, and simplifying tax filing.
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