RULE 6F of Income tax Rules read with section 44AA

[Sushil Kumar Tibrewal]

We have small business of trading having turnover of Rs. 20 Lacs per year. Whether Rule 6F applies to our business income also. if not how we should maintain the books.

AI Summary

Small trading businesses with turnover over Rs. 20 lakhs must maintain books under Section 44AA, not Rule 6F. Rule 6F of the Income Tax Rules, read with Section 44AA, pertains to the maintenance of books of accounts for certain professionals and businesses. For a small trading business with an annual turnover of Rs. 20 lakhs, Rule 6F does not apply as it is primarily designed for professionals specified under Section 44AA. However, under Section 44AA, the business is required to maintain regular books of accounts since the turnover exceeds the prescribed threshold. The business should maintain proper records of all income, expenses, purchases, and sales to comply with tax regulations and facilitate accurate income reporting.