Hi, I am looking forward to buying a residential apartment for my personal use in Mumbai. As I am the proprietor of my firm, can I pay the entire amount of the apartment from my current bank account instead of my savings bank account? Will it cause any kind of trouble in future in terms of taxation? or while reselling it? What other benefits or losses are associated while using a proprietorship firm current bank account instead of a savings bank account? Kindly advice. Thank you.
- Current account is maintained for business transactions. Residential house property for self occupancy is a personal asset and not business asset. It will be treated as drawings and will reduce your capital in the business. You can transfer from current to saving and show it as loan. Intetest on loan will be a income of firm and you can avail deduction on it.
For detailed discussion,please take phone consultation.
Though legally is not a problem, since it is proprietorship firm. But is is always advisable to pay through saving account. However, you transfer the amount from current account to saving account and then transfer to seller account.
Hello,
There won't be any problem even if you pay the amount from the current account. However, it would be advisable to transfer the amount from the current account to your savings account and then as payment for the apartment to the seller.
Regards,
CA Hunny Badlani
Hi
There won't be any issue as such.
However, you may withdraw funds from your current account of proprietorship to your personal savings account and do the property purchase transaction.
Dear Sir,
Hope you are doing well !!
There won't be any problem as such.
However, it is advisable to do the transaction through saving bank account.
No trouble would be caused. Same would be shown as drawing.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement. You can even book phone consultation for further personal assistance.
Thank you.
