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Cheque Fraudulent

Cheque fraud is one of the major cause of monetary or financial loss of banks and the business. It leads to bouncing of cheques, non payment and paying of bouncing fees.

Some of the example of cheque fraudulent are:

  • Floating Cheques: people can go to shops or stores and make purchases and issue post dated cheques. Later on the store would face problems as the money would not show up in their account and the bank may later on reject the cheque.
  • Illegal acquiring of money: one can take print out of cheques to withdraw money from fake bank account.
  • Forging Cheques: one can forge signatures of the cheque holder and cash the cheque.

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.