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ajay (CA Job)     17 May 2021

Saving or current account

Dear,

if a seasonal wholesaler doing plastic tripal or pani business have saving account and this account have less transaction from 10 lakh yearly limit
but he have monthly transaction exceed 1 lakh threw cheque or electric mode

so he is compulsory to open current account open

Thanks
Dr. Ajay Jajodia


 14 Replies

Sourav

Sourav (Student)     17 May 2021

In case of business transactions current account is applicable
ajay

ajay (CA Job)     17 May 2021

Ok thanks sir
Raj C Doshi

Raj C Doshi (Practising CA)     17 May 2021

There is no mandate of opening a current account being a certain turnover or deposit. There is no harm continuing business in saving account from a non compliance or tax point of view.
Sourav

Sourav (Student)     17 May 2021

But for beneficial purposes current account is applicable
anil jain

anil jain (Partner)     20 May 2021

There are limits of withdrawl in SB a/c so people prefer CA in business.

CMA Poornima Madhava

CMA Poornima Madhava (CMA)     20 May 2021

I think banks are reluctant to entertain savings account for business transactions as they have to pay interest on it. But if transactions are nominal, they might not consider to flag it.

Prachi Bansal

Prachi Bansal   22 May 2021

Is it beneficial to open a current account if I have a small business and I am just starting out?

anil jain

anil jain (Partner)     22 May 2021

Then SB Account is beneficial since it will fetch interest

Prachi Bansal

Prachi Bansal   25 May 2021

but what if I want an overdraft facility in a Savings Bank Account? Is it available?

I mean can I withdraw more than my limit? More than the amount of money in my savings bank account?

anil jain

anil jain (Partner)     25 May 2021

Normally OD is not allowed in SB Account.

Prachi Bansal

Prachi Bansal   26 May 2021

Its only allowed in a current account right?

anil jain

anil jain (Partner)     26 May 2021

OD is allowed neither in CA nor in SB but OD in itself is a separate type of account.

anil jain

anil jain (Partner)     26 May 2021

OD is allowed neither in CA nor in SB but OD in itself is a separate type of account.

Prachi Bansal

Prachi Bansal   31 May 2021

I thought a certain amount of OD is allowed in current account holders? 

what does a different OD Account look like?

 


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