Income Tax Maintenance of Accounts

Maintenance of Accounts as per Section 44AA of Income Tax Act, 1961

Sr No

Profession or Business

Conditions for compulsory maintenance of Book of Accounts

Books of Account and other Documents to be kept and maintained
1 Legal, Medical, Engineering or Architectural profession or the profession of Accountancy or Ttechnical Consultancy or Interior Decoration or Authorised Representative or Film Artist A) if his total gross receipts in the profession exceed Rs.1,50,000/- in any one of the three years immediately preceding the previous year
B) if the profession has been newly set up in the previous year, his total gross receipts in the profession for that year are likely to exceed Rs.1,50,000/-.		 (1) a cash book meaning a record of all cash receipts and payments, kept and maintained from day-to-day and giving the cash balance in hand at the end of each day or at the end of a specified period not exceeding a month;
(2) a journal, if the accounts are maintained according to the mercantile system of accounting;
(3) a ledger;
(4) carbon copies of bills of value exceeding Rs.25/-, whether machine numbered or otherwise serially numbered, wherever such bills are issued by the person, and carbon copies or counterfoils of machine numbered or otherwise serially numbered receipts issued by him:
(5) original bills wherever issued to the person and receipts in respect of expenditure incurred by the person or, where such bills and receipts are not issued and the expenditure incurred does not exceed Rs.50/-, payment vouchers prepared and signed by the person, except in a case where the cash book maintained by the person contains adequate particulars in respect of the expenditure incurred by him;
(6) In the case of a person carrying on medical profession, a daily case register in Form No. 3C;
(7) In the case of a person carrying on medical profession, an inventory under broad heads, as on the first and the last day of the previous year, of the stock of drugs, medicines and other consumable accessories used for the purpose of his profession.
A) if his total gross receipts in the profession do not exceed Rs.1,50,000/- in any one of the three years immediately preceding the previous year
B) if the profession has been newly set up in the previous year, his total gross receipts in the profession for that year are not likely to exceed Rs.1,50,000/-.		 Keep and maintain such books of account and other documents as may enable the Assessing Officer to compute his total income in accordance with the provisions of this Act
2 Profession of Information Technology or Company Secretary No minimum receipt limit prescribed and thus applicable in each case Keep and maintain such books of account and other documents as may enable the Assessing Officer to compute his total income in accordance with the provisions of this Act
3 Professions other than specified in (1) and (2) newly setup in the previous year A) In the case of Individual and HUF,
  • if income from profession is likely to exceed Rs.2,50,000/- during such previous year or
  • total sales, turnover or gross receipts, as the case may be, in profession are or is likely to exceed Rs.25 lakh, during such previous year;
B) In other cases,
  • if income from profession is likely to exceed Rs.1,25,000/- during such previous year or
  • total sales, turnover or gross receipts, as the case may be, in profession are or is likely to exceed Rs.10 lakh, during such previous year;
 Keep and maintain such books of account and other documents as may enable the Assessing Officer to compute his total income in accordance with the provisions of this Act
4 Professions other than specified in (1), (2) and (3) A) In the case of Individual and HUF,
  • if income from business is likely to exceed Rs.2,50,000/- in any one of the three years immediately preceding the previous year or
  • total sales, turnover or gross receipts, as the case may be, in business are or is likely to exceed Rs.25 lakh, in any one of the three years immediately preceding the previous year;
B) In other cases,
  • if income from business is likely to exceed Rs.1,25,000/- in any one of the three years immediately preceding the previous year or
  • total sales, turnover or gross receipts, as the case may be, in business are or is likely to exceed Rs.10 lakh, in any one of the three years immediately preceding the previous year;
 Keep and maintain such books of account and other documents as may enable the Assessing Officer to compute his total income in accordance with the provisions of this Act. No specific books of accounts are prescribed.
5 Business newly setup in the previous year A) In the case of Individual and HUF,
  • if income from business is likely to exceed Rs.2,50,000/- during such previous year or
  • total sales, turnover or gross receipts, as the case may be, in business are or is likely to exceed Rs.25 lakh, during such previous year;
B) In other cases,
  • if income from business is likely to exceed Rs.1,25,000/- during such previous year or
  • total sales, turnover or gross receipts, as the case may be, in business are or is likely to exceed Rs.10 lakh, during such previous year;
 Keep and maintain such books of account and other documents as may enable the Assessing Officer to compute his total income in accordance with the provisions of this Act. No specific books of accounts are prescribed.
6 Business whose profits and gains from the business are deemed to be under section 44AE or 44BB or 44BBB, as the case may be Without any turnover or income limit where the assessee has claimed his income to be lower than the profits or gains so deemed to be the profits and gains of his business, as the case may be, during such previous year; Keep and maintain such books of account and other documents as may enable the Assessing Officer to compute his total income in accordance with the provisions of this Act. No specific books of accounts are prescribed.
7 Business to whom the provisions of sub-section (4) of section 44AD are applicable Without any turnover or income limit where the assessee income exceeds the maximum amount which is not chargeable to income-tax in any previous year, Keep and maintain such books of account and other documents as may enable the Assessing Officer to compute his total income in accordance with the provisions of this Act. No specific books of accounts are prescribed.
8 Business other than (5),(6) and (7) A) In the case of Individual and HUF,
  • if income from business is likely to exceed Rs.2,50,000/- in any one of the three years immediately preceding the previous year or
  • total sales, turnover or gross receipts, as the case may be, in business are or is likely to exceed Rs.25 lakh, in any one of the three years immediately preceding the previous year;
B) In other cases,
  • if income from business is likely to exceed Rs.1,25,000/- in any one of the three years immediately preceding the previous year or
  • total sales, turnover or gross receipts, as the case may be, in business are or is likely to exceed Rs.10 lakh, in any one of the three years immediately preceding the previous year;
 Keep and maintain such books of account and other documents as may enable the Assessing Officer to compute his total income in accordance with the provisions of this Act. No specific books of accounts are prescribed.
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