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maintenance of books

rama krishnan (12244 Points)

27 May 2018

are all assessees required to maintain books of accounts?

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7 Replies

Krishna (Manager - Genesis Tax Consultant) (531 Points)
Replied 27 May 2018

Nope, person doing business and generating an revenue or gross receipts less than 10 lakhs no need to maintain the books of Accounts

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rama krishnan (12244 Points)
Replied 27 May 2018

how you will decide that your gross receipts is less than 1000000/- with out maintaining books

SWARNAMALYA B (285 Points)
Replied 27 May 2018

There is no requirement to maintain books of accounts.But if u wish u can

rama krishnan (12244 Points)
Replied 27 May 2018

requirements are different... without books how one would able to ascertain his total income or gross receipts?

Krishna (Manager - Genesis Tax Consultant) (531 Points)
Replied 27 May 2018

Basis on Bank statement transactions

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rama krishnan (12244 Points)
Replied 27 May 2018

bank statements are also part of books only. how will you ascertain cash sales

Krishna (Manager - Genesis Tax Consultant) (531 Points)
Replied 27 May 2018

It means it is the duty of a business men to maintain the proper accounts, If he doesn't, Auditor or Consultant will take the income basis on Bank statement.

He might be dealing the transaction with his client through bank, just in case we can't say it as a books of accounts.

It is kind of Inflow and outflow, in Inflow he might be deposited cash and he might taken loan from third party, but for Income tax they doesn't mind it, basis on overall gross receipts we have to calculate net income.