Post offices do not pay more than 20,000 in cash.
I have a TDS in post office for 5 years. When I visited there to withdraw the interest the concern clerk told that there is no provision to give the interest in cash for more than 20,000/-. He was ready only to give the payment by cheque. I don't know in which clause of which act is wrote such theory. Where I saw many times the employees give the huge amount in cash to their relatives and friends but how it can be raised against the act without proof. more
Mr. Ravinder Goyal G kindly let me know whether if I transfered the interest amount into my S/B of post office and like to withdraw the same as more than 20,000 at a time in cash, can it be a possible or not ? more
Mr. Gaurav Mitta: Apology for a correction. I forgot the word "not" in my post. Please correct "a) I did state that you are an agent" to read as "a) I did not state that you are an agent." more
Not only Post offices but also Banks, NBFCVs and private companies authorized, government corporations etc etc cannot repay deposited amount or interest thereon above Rs. 20000 as per Income tax provisions. This is certain. One can never take a plea that when others are taking an illegal path I have also the right to follow that path. more
Mr. Gaurav Mittal: You have raised a number of issues in your post. I will address all these issues one by one.
a) I did state that you are an agent. What I said the agents can get payment in cash - they have some arrangements under which the officials get some kickbacks.
b) Mr. Ravinder Goyal has already clarified that as per Income Tax Act, Post Office cannot legally pay you proceeds of FD extra in cash in case amount i more than Rs. 20,000.
c) Regarding people who either give or open accounts in the names of their relatives/friends, they are acting against the law and can be prosecuted for money laundering under Benami property Act.
I hope the above addresses your concerns. You may say that nobody has been caught so far under Benami property Act. But that cannot imply that these people did not commit an illegal act and cannot be prosecuted. more
Mr. Golas Please read again what I wrote. I am not an agent. Its my own money. I can understand what do you want to say about Regarding some people getting money in cash, these could be agents. What about those employees who gave the much amount to their relatives or friends? I am just asking according to your views they may be all agents? more