Cash withdrawl limit of partner/director

Partnership act or companies act does not talk about limit. Where as in casae of p/ship it is generally mentioned in the deed how much a partner can withdraw and deal in case of company a board resolution may be passed to this effect.

qyery:   " I WANT TO KNOW CASH WITHDRAWL LIMIT OF PARTNER/PROPRIETER/DIRECTOR OF COMPANY /FIRM , IN WHOLE YEAR F.Y. 2011-12&12-13 & SINGLE CASH TRANSATION LIMIT. PLEASE DESCRIBE IN DETAILS." 

Reply:  -Law does not prescribe any such limit.

Sir, Withdrawal of partner from partnership firm should NOT and NEVER be treated as loan to partner under Unsecured Loans. But it should be treated as regular withdrawal from partner and shown under capital account then it is allowed otherwise sec 269SS or 269 TT will be applicable.

Read more at: https://www.caclubindia.com/forum/details.asp?mod_id=59673&offset=1

Dear Client,

               As PER SETION 269 SSAND 269 T ETC OF Income Tax aCT THERE IS NO  LIMIT FOR CASH WITHDRAWLS FOR DIRECTOR OF PRIVATE lTD cOMPANY, sOLE pROPRIETOR OF A FIRM OR pARTNER OR WORKING PARTNER OR MANAGING PARTNER OF A  PRTNERSHIP FIRM AS   THE LIMITATION OF  Rs.. 20, 000 of cash  receipts or payments/withdrawals OR MORE  OTHER THAN BY ACCOUNT  PAYEE CHEQYUES  OR DEMAND  DRAFTS ETC   269 SS  and 269 T ARE NOT APPLICALBLE TO CORPORATIONS unlike ordinary persons where,  cash with withdrawal or receipts are permitrted  only to the  extent of Rs,20,000 and  anything more  should be  made vby Acxcount payee cheque or DD. ETCd .  A COMPANY OR CORPORATION IS COVERED BY EXEPTION TO SECTION 269 SS ANS 269 T.and 271 D  sO NO PENALTY IS LEVIED which is 100%  in case of transactions between ordinary individuals and d not   corporations, partnership Firms or sole proprietors.  EVEN THEEY EXCEEDCASH WITHDRAWAL LIMIT OF Rs..20000 UNLIKE  ORDINARY PWRSONS WHO SHOULD NOT  ACCEPT DEPOSITS OR WITH DRAW MONEY  BY  WAY OF CASH   EXEMPT TO THE EXTENT OF rS.20,000. these exempted categories  NEED  NOT    MAKE MONEY TRANSACTIONS ONLKY THROUGH A/C PAYEE CHEQUES AND DDs. without any Maximum  limit they can accept  deposits and withdraw cash even if it exceeds Rs.20,000 under Section269TT and @271 D fo rcash transactions exceeding Rs.20,000. unlike ordinary individuals. They would not attract  penal  provisionsns of Sections 269 SS, @69 T and 271 D.  /tjhey can withdraw cash without any upper limirt I mean  exempted categories without incurring penalty from current  account.