Withdrawl of cash from bank
This query is : Resolved
13 August 2011
In a partnership firm cash is needed for operating exp. which will be paid by firm in cash.Should firm issuse the cheque in the name of self or in the name of the person say X, who is sent by the firm to withdraw the money from bank?
So that the no objection will by the I.T.Department.
So that the no objection will by the I.T.Department.
13 August 2011
you can withdraw cash by self only. issue of cheque in the name of person will be treated as loans
13 August 2011
But bank manager say that a person who is sent by the partnership firm cheque must be in the name of that person,but in the case of partner go to collect cash from bank then it can be in the name of self, not in other case self cheque can be issused by the firm.
13 August 2011
That is not a problem, these things happen in practical cases, the ITO will not go to bank and ask them to show the cheque to him.
So if you keep your accounts up to date and you can tell the ITO answers to his question, no problem will be there.
So if you keep your accounts up to date and you can tell the ITO answers to his question, no problem will be there.
13 August 2011
But the I.T.O. will see the bank statement and finds that the cheque is in the name of third person which is shown in account statement issused by the bank and the ITO will treat it as loan. then what ? Now what is the actual banking rules say cheque must be issued by the firm in the name of self or third person who collect the payment on behalf of the firm ?
13 August 2011
If the ITO checks the same then explain him the situation. Give an authority letter to the person who brings the amount for you.
ITO needs explaination for the enteries, if you can give him the same then he is will consider them.
ITO needs explaination for the enteries, if you can give him the same then he is will consider them.
15 August 2011
agreed with experts. Moreover, bank can ask for authority letter but can not ask to write cheque in favour of somebody.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TDS Challan - change of FY 2025-26 to TY 2026-27
- Price inclusive or exclusive of GST while made entry in P& L Account
- Gst registered proprietorship firm
- Minimum tax payable to file Updated return
- AUDITOR APPOINTMENT FOR THE YEAR ENDING MARCH 27
- Change Of Karta In Case of Death
- GST Intimation due to Government took possession of Business Premises under PPE Act
- UDIN ISSUE
- SALARY CAN BE CAPITALIZE
- Tax rate change regarding
- Non filing of I T Returns
- How to Handle Active E-Invoices in GST Portal Deleted from Tally?
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Starting trading business
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
