Staff salaries pay through on sb or current bank account

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This discussion clarifies the procedure for paying staff salaries through either a savings (SB) or current bank account. While payment can be made through an SB account, a current account is generally preferred for better identification, especially for proprietorship concerns. Ultimately, the choice between the two accounts makes little difference for the payment itself, but consistency in using the same account is advised for proper accounting and control.

Kollipara Sundaraiah

Kollipara Sundaraiah (Querist)

04 July 2021 Sir,
It assess salaries paid to staff through on sb or current bank account payable correct procedure.

CMA Poornima Madhava

CMA Poornima Madhava (Expert)

04 July 2021 Thru current account.
In case of proprietorship concerns, it can be transferred thru SB account too but for easy identification, current account is preferred even in this case.

PARAS CHHAJED

PARAS CHHAJED

(Expert)

05 July 2021 It hardly makes any difference for payment from Saving Account or Current Account. One may do according to convenience, however it is advised that one should the same account consistently for proper accounting and control.

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