Under the Income-tax Act, what books of account should a person carrying on business/profession keep?

April 17, 2024 10:42

1. If a person engaged in specified profession and his gross receipts exceeds Rs 2,50,000/- in all the 3 years immediately preceding the financial year, then maintain the prescribed books*

2. If an individual/HUF engaged in business having income which exceeding 2,50,000/- OR Turnover/Gross receipts exceeds Rs 25,00,000/- in any of the 3 years immediately preceding the financial year then then, maintain such books of accounts as may be prescribed*.

3. Person other than individual/HUF engaged in business having income exceeding 1,20,000/- OR Turnover/Gross receipts exceeds Rs 10,00,000/- in any of the 3 years immediately preceding the financial year, then maintain such books of accounts as may be prescribed*.

*Prescribed books of accounts

Cash Book
Journal
Ledgers
Copies of bills or receipts
Original bills of the expenditure exceeding Rs. 50

In the case of medical profession, additional books i.e. daily case register and inventory register must be maintained.

(Specified profession includes - Medical, Accountancy, Architect, Engineering, Company secretary, Interior decorator, Technical consultant, Legal, Film artist, IT professional and Authorized representative)

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