Maintenance Books of Accounts Under Income Tax , GST & Companies Act

Books with invoices, including vouchers and receipts, must be maintained under different statutory laws – Income Tax Act, Companies Act 2013 and GST Act. Books accounts that maintain, retention and claim lists are different according to all 3 laws.

According to the Income Tax Act

If the sales / turnover / gross income of the company or profession are more than Rs. 25,00,000 or income from business or profession is more than Rs. 2,50,000 in any of 3 recent years, accounting records will be kept in a satisfactory manner.

The following Professions are covered by this provision –

  • Legal
  • Medical
  • Engineering
  • Architectural
  • Accountancy
  • Technical Consultancy
  • Interior Decoration
  • Authorised Representative (one who charges fees for representing someone before tribunal or any authority)
  • Film artist (Producer, Editor, Actor, Director, Music director, Art Director, Dance Director, Cameraman, Singer, Lyricist, Story Writer, Screenplay or Dialogue Writer and Costume Designers.
  • Company secretary

Thus, if the above professions have income more than Rs. 2,50,000 in any 3 past years, they need to maintain accounting. In the case of a new profession, revenue is expected to be more than Rs. 2,50,000, professionals should maintain books.

Books of accounts as per Rule 6F

  • Cash Book
  • Journal
  • Ledgers
  • Copies of bills or receipts
  • Daily tariff with information about patients, services provided, fees received and receipt date (persons engaged in medicine)
  • Information about stocks of medicines, medicines and other consumer products (physicians)

If income is not more than Rs. 2,50,000 in any 3 past years or not expected to be more than Rs. 2,50,000 if a new profession is in place, books should also be kept. However, books, in this case, have not been specified – so that some books can be kept, but it should be possible for ATO to calculate revenue.

How long does the books hold?

Books shall be kept for 6 years after the end of the year in question.

Under the Law of Business

Every company needs to keep a book, office or office that the board member can decide. If the company holds books in an office other than a registered office, it must match the RoC. The company can also keep the accounts electronically.

How long does the Books hold?

Books shall be kept for 8 years from the end of the relevant fiscal year.

Accounts Books that Maintain

  • Statement of Cash Flows
  • List of sales and purchases,
  • List of assets and liabilities
  • Costs
  • Works, attachments, writing, documents, minutes and records whether in physical or electronic form

According to GST law

Every registered person must maintain GST entries at the main business center.

Files that are Maintained

  • Manufacture or manufacture of goods
  • Import and export of goods or services or both
  • Stock of goods
  • Income tax new
  • Contributions tax paid and paid and
  • Other information that may be prescribed

How long should Records keep?

Books and records shall be kept for 6 years from the last filing date of the annual dividend (31 December) for that year.

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