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Books maintenance law 44ab

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Sandeep Sharma

Accounts executive

376 Points Posted on 02 January 2024

Does a business, having 50 lac turnover required to maintain books as he is covered under gst threshold limit of 40 lac or only file gst returns?

Replies (4)

Quick Summary

This discussion clarifies the rules around maintaining business books of accounts for companies with a turnover around the GST threshold. Even if covered by presumptive taxation under the Income Tax Act (like Section 44AD), businesses registered under GST are generally required to maintain their books for at least six years. This is separate from Income Tax requirements under Section 44AA, which also mandates book maintenance if turnover exceeds certain limits or gross income is above a specific figure.

Amit Kumar

Tax Professional

67 Points Posted on 02 January 2024

The business is required to maintain and keep books for at least 6 years from the due date of filing annual return if required to take registration under GST law.

Sharath chandra

Accountant

688 Points Posted on 02 January 2024

Must keep books of accounts.

under income tax act you are not required to keep books of accounts if opting for 44ad. presumptive taxation.

but as per 44aa books of accounts is to be maintained if turnover is above 10 lakhs in any of the 3 preceding years or gross income is above 1.2 lakhs.

but as per gst every registered person has to maintain books of accounts for 6 years.