Compulsory maintenance of accounts
Provision regarding maintaining of books of accounts shall be given below:
Every person carrying on business and profession (other than profession mentioned in sub-section (1) shall maintain books of accounts if the following condition is satisfied
Case 1– If Income from business and profession exceeds one lakh fifty thousand in all three Preceding financial year or If Income from business and profession exceeds ten lakh rupees in any one of the three years immediately preceding the previous year.
Case 2– In Case of newly setup business in any previous year, if his income from business or profession is likely to exceed one lakh twenty thousand rupees or his total sales, turnover or gross receipts, as the case may be, in business or profession are or is likely to exceed ten lakh rupees, during such previous year
Case 3– In case of Deemed profit under section 44AD, 44ADA, 44AE if assessee is claiming profit lower than specified (presumptive income) in such case assessee is required to maintain books of accounts.
Person having specified Profession Sub-Section(1) :- If Income from specified profession exceeds one lakh fifty thousand in all three Preceding financial year or If Income specified profession exceeds ten lakh rupees in any one of the three years immediately preceding the previous year.
However in case of Individual and HUF limit of income from business and profession limit for compulsory maintenance of books of accounts is two lakh fifty thousand instead of one lakh twenty thousand and twenty lakh instead of ten lakh in any one of the three years immediately preceding the previous year.
Specified Profession include
- Legal Profession
- Medical profession
- Engineering profession
- Architecture profession
- Profession of accountancy
- Technical consultancy
- Interior decoration
- Authorised Representatives
- Film artists
- Company Secretary
- Information Technology
The books which are compulsory to maintained under section 44AA are to be kept and maintained for the period of atleast 6 years from the end of the relevant assessment year.