query regarding B-HNI CATEGORY APPLICANTS

[Batmanbaba]

For all who apply in B-HNI category for differnt IPO,S i have following queries



1. which account do you use for the purpose savings/current..as for b-hni mininum application amount is 10 lakh...there is some limit for savings account after which bank deducts 2% or 5% tds like 4 lakh and 1 crore respectively and also heavy transaction can lead to blocking of account....??

2. can we open current account for applications in B-HNI category if u are already salaried.

 

[Vasuki]

For all who apply in B-HNI category for differnt IPO,S i have following queries



1. which account do you use for the purpose savings/current..as for b-hni mininum application amount is 10 lakh...there is some limit for savings account after which bank deducts 2% or 5% tds like 4 lakh and 1 crore respectively and also heavy transaction can lead to blocking of account....??

2. can we open current account for applications in B-HNI category if u are already salaried.

B- hni ?
Whats B = bussines?

 

[Batmanbaba]

B- hni ?
Whats B = bussines?

No...in hni there are two categories...big- hni....for applications above 10 lakh rupees in ipo

And small hni...for applications from 2 lakh to 10 lakh

 

[sxchzy]

i use icici direct + icici bank

 

[jonamdhar]

For all who apply in B-HNI category for differnt IPO,S i have following queries



1. which account do you use for the purpose savings/current..as for b-hni mininum application amount is 10 lakh...there is some limit for savings account after which bank deducts 2% or 5% tds like 4 lakh and 1 crore respectively and also heavy transaction can lead to blocking of account....??

2. can we open current account for applications in B-HNI category if u are already salaried.

I have been doing B-HNI from both HDFC and ICICI Bank accounts...didn't have any issue.

Are you sure about the TDS? Didn't find anything about it online.

I tried using current account for IPO application, but it wasn't allowed.

 

[Batmanbaba]

I have been doing B-HNI from both HDFC and ICICI Bank accounts...didn't have any issue.

Are you sure about the TDS? Didn't find anything about it online.

I tried using current account for IPO application, but it wasn't allowed.

Cash withdrawals
TDS rules related to cash withdrawals are defined by Section 194N of the Indian Income Tax Act. The law stipulates that withdrawals above Rs 1 crore in a fiscal year attract a 2 per cent TDS. For individuals who haven't filed their income tax returns in the previous three years, a 2 per cent TDS applies to cash withdrawals over Rs 20 lakh, and a 5 per cent TDS applies to the amount withdrawn above Rs 1 crore within the same financial year.

It's worth noting that TDS deducted under Section 194N isn't classified as income but can be utilised as a credit when filing Income Tax Returns (ITR).

In a business context, deposits that align with the business turnover declared in the income tax return, specifically those under Sections 44AD/44ADA, are exempt from penalties. Conversely, deposits not linked to business operations may draw the attention of the tax department.

 

[Batmanbaba]

I have been doing B-HNI from both HDFC and ICICI Bank accounts...didn't have any issue.

Are you sure about the TDS? Didn't find anything about it online.

I tried using current account for IPO application, but it wasn't allowed.

If ur bhni applications is successful money will come and go out....so it will create withdrawals and deposit in account

 

[jonamdhar]

Cash withdrawals
TDS rules related to cash withdrawals are defined by Section 194N of the Indian Income Tax Act. The law stipulates that withdrawals above Rs 1 crore in a fiscal year attract a 2 per cent TDS. For individuals who haven't filed their income tax returns in the previous three years, a 2 per cent TDS applies to cash withdrawals over Rs 20 lakh, and a 5 per cent TDS applies to the amount withdrawn above Rs 1 crore within the same financial year.

It's worth noting that TDS deducted under Section 194N isn't classified as income but can be utilised as a credit when filing Income Tax Returns (ITR).

In a business context, deposits that align with the business turnover declared in the income tax return, specifically those under Sections 44AD/44ADA, are exempt from penalties. Conversely, deposits not linked to business operations may draw the attention of the tax department.

Thus is regarding cash withdrawals. As long as you are using the funds online or transferring online...no TDS is applicable.

 

[jonamdhar]

If ur bhni applications is successful money will come and go out....so it will create withdrawals and deposit in account

The rule is about withdrawing physical cash from the bank, not for deposits and transfers online.

 

[Batmanbaba]

i use icici direct + icici bank

I have heard they charge very high brokerage......

 

[Batmanbaba]

Thus is regarding cash withdrawals. As long as you are using the funds online or transferring online...no TDS is applicable.

Ohh I see...but surely there will heavy amount transactions in multiples .....which bank employees call to ask for....for me in SBI they called to ask about the transaction...and said that if this continues they will have to close the account.....haven't u got any call for clarification

 

[sxchzy]

I have heard they charge very high brokerage......

they do
but asba feature is only enabled via upi on discount brokers up to 5L so it is a requirement

 

[Batmanbaba]

they do
but asba feature is only enabled via upi on discount brokers up to 5L so it is a requirement

I never Heard such rule via asba

 

[sxchzy]

upi asba limit is 5L
netbanking asba doesnt have any limit

 

[jonamdhar]

Ohh I see...but surely there will heavy amount transactions in multiples .....which bank employees call to ask for....for me in SBI they called to ask about the transaction...and said that if this continues they will have to close the account.....haven't u got any call for clarification

Nope...I use HDFC and ICICI, never got any call. I guess private banks are fine with high transactions.

 

[Cc_creditguy]

I have heard they charge very high brokerage......

Yess 🥲🥲. 3

 

[jab]

We can do ASBA with axis bank(should be able to do with most banks), using netbanking, by linking your own zerodha account. This eliminates the high brokerage fees of full time brokers (like icici direct, asxis direct etc).
The second advantage of this method is that, the money stays in the account till the time the IPO is successful. So its easy to maintain AQB and the 10 lakhs which is required for maintaining the burgundy status and credit cards is put to good use .