cash deposit in bank account

No , it i not agaisnt law.

For example, in a readymade garment showroom , cash sale is made, next day the cash collected from customer is deposited to bank.

Agree with Mr. Bijendra. You only have to be carefull in cash payment of expenditures which should not increase more than Rs. 20 K in once to a single person.

i agree with Mr. Bijendra sir

you can do so.....................

BUT MAKE YOUR SURE THAT YOUR INCOME TAX RETURN tallies with the amount of cash deposit. because in your case amnt of cash deposit can considered as amount of sales and if you are not showing that much amount of sales in your return then you may get into trouble.

Agree with Mr. Bijendra. You only have to be carefull in cash payment of expenditures which should not increase more than Rs. 20 K in once to a single person.

In case of Cash Sales what ever is the collection, you might be depositing on a lumpsum basis in the bank. There is no problem relating to income tax. But you have to be careful while preparing your income statement that how much sales you are disclosing and what is the expenditure you have incurred and claimed against that sale. In case of Payment for any expenses a single Payment should not be more than 20000.

Hi

I have the following queries:

1. Are we required to maintain the identiy of the customers who are purchasing goods more than Rs.20,000/- in cash ? normally we donot have a customer name / address field in the Cash Memos we issue. Can the I-T deptt in any way harass us for this ?

2. Is there any problem if we hold large amountsw of Cah in Hand ? say over 15 lacs on Fy closing or in between ?

Originally posted by : Ullash
	Hi I have the following queries: 1. Are we required to maintain the identiy of the customers who are purchasing goods more than Rs.20,000/- in cash ? normally we donot have a customer name / address field in the Cash Memos we issue. Can the I-T deptt in any way harass us for this ?   2. Is there any problem if we hold large amountsw of Cah in Hand ? say over 15 lacs on Fy closing or in between ?

i have the same query  as point no.1

is it reqd to mantain records of customers who are purchasing goods more than 20000.

and how does it matter with cash sales if  it has been made in same state or inter-state??

No Not At All. You Are not requied to maintain the details of Parties who purchases above above 20000