Let me thank you for replying to my queries concerning tax matters earlier. I have a query though it is not concerning stocks but it relates to cash.
The company that I am working does not have a bank account where our branch is located and is now planning to issue bearer cheques in my name, for which I might be required to show my identity proof at the time of withdrawal. Though this money will be used for the purpose of petty cash for company expenses, Normally an expense of Rs.240,000/- is there every month, please let me know the following:
1. What are the tax implications if Income Tax knows about this bearer cheque in my name.
2. Should I take a letter from the Company stating that the bearer cheque though issued in my name is meant for company petty cash use.
3. Is it legal.
Please suggest and thanks in advance.
Regards,
The company that I am working does not have a bank account where our branch is located and is now planning to issue bearer cheques in my name, for which I might be required to show my identity proof at the time of withdrawal. Though this money will be used for the purpose of petty cash for company expenses, Normally an expense of Rs.240,000/- is there every month, please let me know the following:
1. What are the tax implications if Income Tax knows about this bearer cheque in my name.
2. Should I take a letter from the Company stating that the bearer cheque though issued in my name is meant for company petty cash use.
3. Is it legal.
Please suggest and thanks in advance.
Regards,