03 October 2012
Dear Sir, On of the assessee is a two wheeler trader in rural area, and his most of sale are being made in cash. As department checks on cash payment more than 20000/-. Whether the cash sale more than 20000/- in cash can cause any problem or not. Please advise me.
03 October 2012
Restriction in Income Tax Act is only for cash payment.
There is no restriction on receipt of cash from sales.
However, here you have to take care of 1 thing. The cash will be deposited in the bank account. Please ensure that the cash deposited can be substantiated with the sales invoices.
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