Thus, as cash deposits and withdrawals of Rs 10 lakh or more in a bank account in a financial year are required to be reported to the tax authorities, you need to be careful if you are exceeding the prescribed threshold. This limit is Rs 50 lakh and more in case of current accounts.

Who can deposit in current account?

However, the current account holder can deposit the cash from any other branch of a bank other than the home branch by paying a nominal charge as applicable. It helps businessmen to make a direct payment to their creditors by issuing cheques, demand-drafts or pay-orders, etc.

Is GST mandatory for Current Account?

To carry out any financial transaction for your business, you require to set up a Current Account. However, GST is not mandatory to open a Current Account. There is no GST on Current Bank Account.

How can I account for my customer deposits?

Think of an account as like a line item on your personal budget. Check to make sure that this “Customer Deposits” account has not already been created under another name. Determine which accounts to debit or credit. All financial transactions must be entered in the company’s general financial ledger.

What does it mean to have a call deposit account?

A call deposit account is a bank account for investment funds that offers the advantages of both a savings and a checking account. Like a checking account, a call deposit account has no fixed deposit period, provides instant access to funds, and allows unlimited withdrawals and deposits.

What kind of account is a bank deposit?

Bank deposits are money placed into a deposit account at a banking institution, such as savings accounts, checking accounts and money market accounts.

How to account for customer deposits in the general ledger?

Anyone should be able to look up a journal entry in the general ledger and then go to the backup documentation easily. Keep paper copies of all documentation for at least one year. You will need these until your accounts have been audited and your taxes filed.