The post-dated check is the most common means of payment for a loan. It is a check that is written and issued by the debtor for a date in the future and may not be encashed or deposited until such time. Debtors use post-dated checks to avoid missing payments on their loans.

What is the use of post-dated cheque?

To define post-dated cheque, it is a form of a cheque drawn with a future date written on it. To simply put, post-dated cheque is one which is drawn with a date which is after the date on which cheque was written. Lets understand with an example. Assume that today is 27th Jan and you are writing a cheque.

How do you account for post dated Cheques?

A post-dated cheque is one that the recipient can encash on a future date .Creating a Post-dated VoucherGo to Gateway of Tally > Accounting Vouchers > Payment.In the Voucher Creation screen, click T : Post-Dated . Click F2: Date and provide the date of the cheque.Select a bank account in the Account field.More items

Can we cancel post-dated cheque?

You can ask your bank to stop the payment and need to get give details of the cheque , but remember that person can file case against you in future and if You dont owe any amount to him then dont worry.

What happens after stop cheque?

31: Even a “stop cheque payment” instruction to his bank can land a person in jail. The Supreme Court, in a recent judgment, has ruled that such instructions amount to an offence under the Negotiable Instruments Act, 1885, enough to send the offender behind bars.

What is the validity period of cheque?

It is used primarily to make a deposit at a later date. Suppose a Cheque was issued on 5 February 2021, but the date stated on that check is 25 February 2021. Such a search may be encased on or after April 25, 2021, and not before that. These forms of cheques are called post-dated cheques.

Is stop cheque illegal?

The Supreme Court has ruled that the stop payment of post-dated cheques issued by a person to settle his debt or liability could amount to a penal offence. Submitting post-dated cheques by borrowers is a customary practice for home finance and other retail products like personal, auto and consumer durable loans.

What is the maximum amount of cheque?

It is called positive pay system for cheques, under which re-confirmation of key details may be needed for payments beyond Rs 50,000. Availing of this facility would be at the discretion of the account holder. However, banks may consider making it mandatory in case of cheques for amounts of Rs 5 lakh and above.