forex inward remittance
1 month ago
We exported garments to Italy in 2 seperate invoices totaling 657000 inr including shipping charges..120250./-
My client transferred 330000 in my co.current AC and the balance he transferred in my personal savings account..(327500 inr)..my question, is there any problem or anything to worry reg my savings and current account..will my both banks can send me query to furnish details..
Do I need to worry anything or what I need to prepare to sort this
A.Dear Client,
A current account is typically opened for commercial or business purposes, while a savings account is used for personal transactions. High-value transactions conducted through these accounts are automatically reported to the Income Tax Department via Know Your Customer (KYC) and PAN-Aadhar linkage under the CBS (Core Banking Solution) mode of banking operations.
When a tax invoice is generated for a business transaction, it is expected to be paid through the current account. If part of the payment is made through the savings account, it may lead to audit objections and queries from the Income Tax Department. To proactively address this issue and regularize the matter, a reconciliation statement should be prepared. This statement helps reconcile the financial transactions between the current and savings accounts, ensuring that all business-related payments are appropriately routed through the current account. By doing this upfront, any potential queries from authorities can be avoided, and the financial records can be maintained in compliance with regulatory requirements.
A current account is typically opened for commercial or business purposes, while a savings account is used for personal transactions. High-value transactions conducted through these accounts are automatically reported to the Income Tax Department via Know Your Customer (KYC) and PAN-Aadhar linkage under the CBS (Core Banking Solution) mode of banking operations.
When a tax invoice is generated for a business transaction, it is expected to be paid through the current account. If part of the payment is made through the savings account, it may lead to audit objections and queries from the Income Tax Department. To proactively address this issue and regularize the matter, a reconciliation statement should be prepared. This statement helps reconcile the financial transactions between the current and savings accounts, ensuring that all business-related payments are appropriately routed through the current account. By doing this upfront, any potential queries from authorities can be avoided, and the financial records can be maintained in compliance with regulatory requirements.
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A.Dear Client,
A current account is opened for the commercial purpose and a savings account is opened for personal purposes. A high-value transaction is reported automatically to the Income Tax Department through KYC and PAN-AADHAR Link of the account holder under the CBS mode of Banking operation. When a tax invoice is raised for the full amount against a business transaction, that is required to be paid off through the current account and the part payment to the savings account may raise an audit objection apart from the query from the Income Tax Deptt. So, a reconciliation statement is required to be made to regularise the matter upfront before any query is raised by the concerned authorities. Reach out to a CA or Income Tax practitioner for proper guidance and steps.
A current account is opened for the commercial purpose and a savings account is opened for personal purposes. A high-value transaction is reported automatically to the Income Tax Department through KYC and PAN-AADHAR Link of the account holder under the CBS mode of Banking operation. When a tax invoice is raised for the full amount against a business transaction, that is required to be paid off through the current account and the part payment to the savings account may raise an audit objection apart from the query from the Income Tax Deptt. So, a reconciliation statement is required to be made to regularise the matter upfront before any query is raised by the concerned authorities. Reach out to a CA or Income Tax practitioner for proper guidance and steps.
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