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Tender Date or Clearance Date of Cheques in PPF

Suppose a Cheque is deposited in PPF on 29th March 2013 and it got cleared on 1st April 2013 then according to the Govt. Tax Deposit Rule, where if the tax is deposited within the due date by cheque but it got cleared after the due date then the cheque’s tender date will be taken as the deposit receipt  date.  This means then the tax will be deducted in the financial year 2012-13 under section 80C.

What should a person do if he receives a Dishonored Cheque

• Notice should be issued to the payer within a month of the dishonor of the cheque. if it is not issued within a month then the cheque needs to be presented to the bank again and the notice can be issued after the cheque bounces.
• After the notice, 15 days should be given to the payer to make the necessary payments.

• If not paid within 15 days, then a suit can be filed in the court within a month after the 15 days notice period.

Steps for giving notice and for filing a suit in the court

1. Notice to be given within a month of the date of cheque bounce.

2. It should be sent to the payer through a Registered Post along with the acknowledgement receipt.
3. One copy of notice should be sent to UPC as well.
4. The documents required while filing a suit are complaint letter, oath letter and photocopy of all the necessary documents such as cheques, memos, notice copy and acknowledgement letter.

What is Cheque Standardization

From the past few years, banks have been adding certain patterns and designs on the cheques so as to increase the security of cheques and to prevent cheque misuse, tampering or alterations. However, due to excessive use of ‘at par payable’ cheques or multi city cheques, RBI has decided to standardize the cheques in terms of size, MICR band, quality of paper, etc for easier, secured and faster clearing.