Books of Accounts and Audit Requirements
The Income Tax Law sets out the books of accounts to be kept for income tax purposes. It has been described under Article 44AA and Rule 6F.
Required to keep the books of accounts?
The following professions must maintain accounting records if their total revenue is greater than Rs. 150,000 in the previous 3 years for a career list. This also applies to a newly established profession whose total revenue is expected to exceed Rs 10,000. 1,50,000.
The accounting records to be booked in Rule 6F were identified:
- The architect
- Technical Consultancy
- Interior decoration
Authorized representative – a person who represents a person for remuneration before a body or other authority under the law. It does not include an employee of the person represented or the person who performs the accounting profession.
A filmmaker – includes a producer, an editor, a representative, a director, a music director, a technical director, a director, a photographer, a singer, a songwriter, a storyteller, a screenwriter, And fashion designers.
If you are a freelance entrepreneur pursuing any of these professions, your total receipts are more than Rs. 150000, these rules apply to you.
If the total income of the above professions does not exceed Rs.150,000 in one or more of the previous three years of an existing occupation or a newly established occupation whose total revenue is expected to be less than Rs 1, 50,000 – the professional must keep books of accounts. Unless all books or records are not kept, they are not exactly selected. The only requirement is that AO is able to calculate taxable income from professional ones.
From 18-18 years, the maximum rupee. 150,000 to Rs. 250000.
- Accounting books defined by Rule 6F
Record cash and cash payments daily that show the cash balance at the end of the day or at best at the end of each month and not thereafter.
- Magazine in accordance with the Commercial Accounting System
The newspaper is a record of all daily transactions. It is a record, in terms of accounting, where the total credits equal the total debt, when we follow the double-entry accounting system, that is, each opponent has a balance against and vice versa.
- The ledger in which all entries from the magazine flow contains details of all accounts, and this can be used to prepare financial statements.
- A copy of the invoices or receipts issued by them which are more than 25 rupees
Bills of original expenses incurred which are more than 50 rupees
- The following are additional requirements in the case of a person with a medical profession – doctors, surgeons, dentists, pathologists, radiologists, etc.
Record daily cash with patient details, services provided, fees received and date of receipt
Details of stock of medicines, medicines and other consumables used
These books must be kept at the head office or in each office.
How long should these books be preserved?
Records must be kept each year for 6 years from the end of this year.
Not keeping the books of accounts?
If you fail to maintain account records as stated, you may be fined 25,000 rupees or in some cases where you may have international transactions and failed to retain the information and documentation for such transactions – 2% of the value of each international transaction.
It will be hard to keep your books and track all your expenses and income in a systematic way.