Restrictions on issuing bearer cheque

[PRADEEP KUMAR]

Pl.tell us whether an incorporated company can freequently issue bearer cheques to its clients and employees and workers?What are restrictions on issuing bearer cheques as per company law and other laws inforce in our country?

AI Summary

Can Companies Issue Bearer Cheques Often? No Restrictions, But Income Tax Act Requires Account Payee Cheques for Benefits. An inquiry was made about whether an incorporated company can frequently issue bearer cheques to clients, employees, and workers, and what restrictions exist under Indian law. The response indicated that there are generally no restrictions under the Negotiable Instruments Act or the Companies Act regarding issuing bearer cheques. However, the Income Tax Act requires payments to be made via account payee cheques to claim certain expense benefits. Additionally, any acceptance or repayment of loans exceeding Rs. 20,000 must also be conducted through account payee cheques.