How to show income and file return

The nature of my work is that I am generating income in cash of an average Rs 30,000-Rs40,000 every month by liasioning etc. I have began this since 2 months and expect to continue well over the few years.

Please let me know how to file my return accordingly as such since I do not issue any bills or such to people who pay me for my services in cash. Someone suggested me to open a current account in my name and start depositing this cash in same after my expenses to show it as income.

Suppose my income is less than 5 Lac in similar fashion every year then how should I show it in my books to be maintained? Which ITR form is to be filed?

I am very confused, please guide best manner to account for this income in legitimate manner and to prepare my return at end of year accordingly.

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See if you are doing business with a lot of cash involved then there is always a bit of tension. If you receive money in cash then there is no problem, but you should make sure that you donot make any expenditure exceeding Rs.20000 in cash. You can open a current account in the bank in the name of your business and then go on depositing the cash that you receive. Even if you are not issuing any bills to your clients/customers it is advisable that you create bills atleast for your reference. Also consider the fact that you will have to pay service tax/sales tax as applicable based on the nature of business you are in.

To suggest you any further we would require more information about the business. You can contact me at mrpraveen @ live.com

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