WHO IS REQUIRED TO MAINTAIN BOOKS AND ACCOUNTS UNDER INCOME TAX

 Every newly started business think about when they need to maintain proper books and accounts including records as require under income tax act,1961. Further in today complex market scenario it is difficult to detect any transaction therefore government prescribe businesses including professions to maintain proper books.


Following personal require to maintain proper books and accounts that enable assessing officer to determine his total income [Sec 44AA ,Income tax act1961]

  1. Personal who carry legal, medical, engineering, architectural, accountancy, technical advisory, interior decoration, profession of authorized representation, profession of film artist, company secretary, IT profession  are compulsory require to maintain proper accounts.
      2.     In case of individual or HUF
    • Existing business or profession where income exceed Rs 250,000 or revenue exceed Rs 25,00,000 in any one of three immediately preceding FY, OR
    • New business or profession where income likely to exceed Rs 250,000 or revenue exceed Rs 25,00,000 during financial year. 
       3.     In case of any other personal
    • Existing business or profession where income exceed Rs 1200,000 or revenue exceed Rs 10,00,000 in any one of three immediately preceding FY, OR
    • New business or profession where income likely to exceed Rs 120,000 or revenue exceed Rs 10,00,000 during financial year. 
         4.    Person claim lower income as compared to income computed in presumptive taxation                               Scheme.


IMPORTANT NOTES 

    1. Books and accounts shall be kept for 6years from end of relevant assessment year.
    2. For profession specified in point 1, rule 6F prescribe books of accounts or documents to be  maintain if gross receipt in all 3 preceding PY exceed Rs 150,000 or  in case newly set up profession receipt likely to exceed Rs 150,000 in year.
For read more facts about income tax please visit: https://taxkidunniya.blogspot.com/?m=1

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