Books of accounts

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Santanu Panda (Querist)

18 October 2013 I run and maintain a study centre.many students admit here under different cources affilated by different universities in the countries by paying course fees.
What kind of books of accounts should be maintained by me for final accounts under I.T Act?

CA Chandra Kishore Bajpai

CA Chandra Kishore Bajpai (Expert)

18 October 2013 Section 44AF read with Rule 6F deal with maintenance of books of accounts. however no such books have been prescribed for the business carried out by you.
In general Cash book, journal, copy of receipt issued to students and expenses bill should be maintained & kept to show and prove income expenditure

Nikhil Kaushik

Nikhil Kaushik (Expert)

19 October 2013 Books prescribed under the Act are:

(i) a cash book;

(ii) a journal, if the accounts are maintained according to the mercantile system of accounting;

(iii) a ledger;

(iv) carbon copies of bills (exceeding Rs 25), whether machine numbered or otherwise serially numbered, wherever such bills are issued by the person, and carbon copies or counterfoils of machine numbered or otherwise serially numbered receipts issued by him:

(v) original bills wherever issued to the person and receipts in respect of expenditure incurred by the person or, where such bills and receipts are not issued and the expenditure incurred does not exceed fifty rupees, payment vouchers prepared and signed by the person:

the requirements as to the preparation and signing of payment vouchers shall not apply in a case where the cash book maintained by the person contains adequate particulars in respect of the expenditure incurred by him.

Please refer Section 44AA of the Income-tax Act, 1961 and Rule 6F of the Income-tax Rules, 1962.

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