Draft DD (Demand Draft) using Bank Account Cheque

In this society DD or Demand Draft is taking a major role as so many Institutes, Organization are forcing the people to furnish the DD instead of an A/c Payee Cheque, as this is the secure way to clear the funds than an Account Payee Cheque because of Insufficient Funds problem. If you are applying for any government projects you need to submit the Tender along with the Tender Registration Fee in the Form of DD. For any renowned jobs the the Job Seeker has to submit the Application along the minimum fee in the form DD. And even the students has to make the Fee payment through DD in most of the Institutes like ICAI.

Why you take the DD using the Cash, if you have a Savings Account. It is not mandatory to have Bank Account on your name, it can be in your Parents, Relatives or even of your Friends name. Just take a blank cheque for taking the Demand Draft.

Keep in mind the following points while filling the Cheque for DD purpose.

1. Write the date of the Cheque when you are drafting the Demand Draft.
2. Make the Cheque as Account Payee by just striking 2 cross lines in top left corner.
3. In the Pay space write Yourself as we authorize the Bank to Draft a DD based on the information enclosed with the Cheque in DD Form.
4. Write the Payment Amount in Figure as well in Words in the specified elements in the Cheque. Mention he amount including the DD Charges. For instance, DD amount 4,000 and DD Charges 25 total amount to written in Cheque is 4,025/-.
5. Sing in the cheque bottom right area which is provided for the Account Holder signature. The signature should tally with the signature updated with the bank.

After writing the Cheque for the DD complete the DD Form with the required information and mention your Cheque details in the area provided in the DD Form. Just enclose the Cheque with the DD Form and hand over it to the Bank Officer for drafting a DD infavour of any Institute Name or Organization Name.

By doing this you can record such transactions in your Bank Account itself and will be available for your Income Tax Returns purpose. Where as in drafting a DD using cash will hurdle to keep record of such transaction.