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Maintenance of accounts: [section 44AA and rule 6F]

  1. In case of specified professions [Gross receipts exceeds Rs.150000] : the followings books of accounts shall be maintained by a person carrying on the specified profession:-

                                i.         A cash book;

                              ii.         A journal, (in case of mercantile system of accounting);

                              iii.         A ledger;

                            iv.         carbon copies/ counterfoils of bills and receipts, serially numbered, issued by him,  Provided that nothing in this clause shall apply in relation to sums not exceeding Rs.25;] 

                              v.         original bills and receipts issued to him [where such bills and receipts are not issued and the expenditure incurred does not exceed Rs.50, payment vouchers prepared and signed by him or adequate particulars of expenditure in the cash book]:

  1. Other: the following persons shall maintain such books of account and other documents as may enable the A.O. to compute total income in accordance with the provisions of this Act:-

                          i.               A person carrying on Specified professions, whose Gross receipts do not exceed Rs.150000 in any one of three previous years preceding to the current previous year. (in case profession is newly setup gross income is not likely to exceed in current previous year)

                        ii.               A person carrying on other professions or business, whose Gross receipts exceed Rs.10 lakh or income from PGBP exceeds Rs.120000 in any one of three previous years preceding to the current previous year. (in case profession/ business is newly setup: likely to exceed in current previous year)

                      iii.               A person to whom section 44AD or section 44AE or section 44AF [or section 44BB or section 44BBB], as the case may be, and he claims his income to be lower than the deemed profits under respective sections.


Ø  Specified professions: legal, medical, engineering, architectural, accountancy, technical consultancy, interior decoration, authorised representative and film artist

Ø  Such books and documents shall be kept and maintained for a period of 6 years from the end of relevant A.Y.

Ø  In case assessment reopened u/s 147 within the abovesaid period, then all the books etc shall be continue to be kept and maintained till the completing of assessment so reopened.

Penalty: A.O. or CIT (appeals) may direct to pay Rs.25000 as penalty. [section 271A]

Published by

CA Anshu Agarwal
(B€ @LW@¥$ ]-[@Pp¥)
Category Income Tax   Report

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