Cash vs cheque transactions

Hello,

I am a trader cum exporter, most of the items I buy have to be paid in Cash, and since I export most of my items, I receive the payments through wire.

I have heard that Cash transactions are not allowed by Income Tax, but I have no other option as the items I am dealing with are sold on Hard Cash, there is no cheque / dd or NEFT because of the risks involved. The trading amount is from 500 - 60,000 on cash

Can you please tell me how to file my accounts in such condition.

Thanks

 

 

Replies (1)
Take PAN of your suppliers and make proper purchase bills. And only in accounts make payments to suppliers

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