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
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Saving or current account
Replies (14)
Quick Summary
In case of business transactions current account is applicable
Ok thanks sir
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.
But for beneficial purposes current account is applicable
There are limits of withdrawl in SB a/c so people prefer CA in business.
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.
Is it beneficial to open a current account if I have a small business and I am just starting out?
Then SB Account is beneficial since it will fetch interest
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?
Normally OD is not allowed in SB Account.
Its only allowed in a current account right?
OD is allowed neither in CA nor in SB but OD in itself is a separate type of account.
OD is allowed neither in CA nor in SB but OD in itself is a separate type of account.
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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