07 February 2009
As rightly opined by Sri Jitender, acceptance of cash towards Sales doesn't adversely affect you from Income tax point of view.
But Person who pays you cash is your Customer. In order to maintain coordial relations with Customers, it is desirable for you to orally infom your Customer of tax implications in assessment of his activities, if he pays cash due to unawareness
Normally all business people are aware of tax implications.
Any way, from your side, do NOT transfer or appropriate the amount in due course also towards Security Deposit etc., because acceptance of cash towards Security Deposit has tax implications
CAclubindia
