Income tax return

As per rule-6DD and sec-40A of Income Tax Act, if payament made to a person in a single day toward an expenditure exceeding Rs.20000 than it shall be allowed as deduction if it is paid through an Account Payee cheque.

Thus Please use to pay through account payee cheques instead of withdrawn  from bank and than cash payament.

Moreover if payament does't exceeding the limit then its OK. You can make payement through cash.

Thanks & Regards,

Vivek.

Dear vishal,

There is no issue in making payment via bank even if your income is in cash so far as you are able to explain your source of income. Most retailers deal in the same way. Just maintain proper documentation of the sales made by you so that Source of Income is legally determinable.