general

Section 44AA and Rule 6F of the Income Tax Act prescribe the books of accounts to be maintained by the taxpayers for the purpose of Income Tax.

A Cash book: It is a book of accounts where day to day cash transactions, i.e. cash payments and receipts are recorded.
A journal: A profession should maintain a journal as per the mercantile system of accounting. In this journal, day to day transactions are recorded using double entry system of accounting.

• A ledger should also be maintained by the taxpayers.
• Photocopies of bills or receipts exceeding Rs 25 must also be kept
• Photocopies of bills of expenses exceeding Rs 50 must also be kept