Accounting for Business/Profession (Yearly)

Books of Accounts

The Income Tax Act has specified the books of accounts that are required to be maintained for the purpose of Income tax. These have been prescribed under section 44AA and Rule 6F.

Who is required to maintain books of account?

1.Business Income >120000 need to maintain Books of Accounts as per 44AA

2.Business Sales, turnover, gross receipts > Rs 25 Lakh need to maintain Books of Accounts as per 44AA

3.Books of accounts/accounting records have to be maintained if the gross receipts are more than Rs. 1,50,000 in 3 preceding years for an existing profession. This also applies to a newly set up profession whose gross receipts are expected to be more than Rs. 1,50,000.

The accounting records to be kept have been prescribed in Rule 6F. The below professions are required to maintain Books of accounts/accounting records:


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