Books of Accounts

1.      Specific books of accounts are prescribed only for certain professionals.

2.      In case of assessees carrying on business, no specific books of accounts have been mandated.

3.      However they should maintain proper books of accounts so that the financial transactions entered into by them can be accounted for. This is applicable if the turnover will exceed Rs. 10 lakhs or profit from business will exceed Rs. 1.2 lakhs or income lower than that deemed u/s 44AE is to be declared.

4.      Proper books are generally Cash book, Bank book, Journals and Ledgers.

Us 44AA, Every person carrying on business or profession  shall keep and maintain such books of account and other documents as may enable the Assessing Officer to compute his total income and Rule 6F shows the BOA to be maintained:-

- cash book,

- journal (if BOA are maintained on mercantile nasis)

- Ledger

- Carbon Copies and counterfoils of bill issued...

who and when..?

(i) where the business or profession is newly set up in any previous year, if his income from business or profession is likely to exceed Rs. 120000/- or his total sales, turnover or gross receipts in business is likely to exceed Rs.10,00,000

(ii) Deemed profits and gains from business and proffesion Us 44AD/AE/AF.....