Cash transaction limit of rs 2 lacs

DEPOSIT CASH IN PARTS LESS THAN 50000/- PER DAY

AND YOU SHOULD KNOW SOURCE FOR THAT CASH

IF FROM BUSINESS U HAVE TO RAISE INVOCE AGAINST

IT 

Hi,

Loan can not be paid in cash in any circumstances and dont deposit more than Rs.50,000 in a single day in single account.

But I am confused that whether we can deposit any amount below Rs 2 lacs not more than Rs 49,90,000 in current a/c and Rs 49000 and not more than 9,90,000 in savings a/c in a year (inclusive of all a/cs by individual) But in paper they are saying that Income tax department will charge penalty and will cross examine books. But I want to say that any business man is Distributor and supplying goods to small shop keepers and daily collect cash from them and deposit in their current a/c and pay to the company and it not possible to maintain the a/cs of 300 to 400 shopkeepers we maintain Agents from whom the goods are supplied to them what will be the seneraio then.

See If you are a retailer and  most of the sales are made in the mode of cash than you have to prepare the invoice containing the name of the party address and you have to deposit the cash in bank and maintain the record in such a way that the cash amount and sales bill number will tally so that there is no any proble persists.