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.

[FCA Adv amit aggarwal]

mandatory to maintain books of accounts as per provisions of sec 44(1) of income tax Act 1961- cash, purchase and sales register and invoices, debtors and creditors register and invoices. assets and liabilities records with bills, expense and income vouches and payment and receipts proof.

AI Summary

Bookkeeping requirements for small trading businesses are mandatory, with cash, purchase, sales, debtor, creditor and voucher records to be kept.
A small trading business with annual turnover of about Rs. 20 lakhs raised a query on whether Rule 6F of the Income-tax Rules applies to business income and how books should be maintained. The response states that maintenance of books of account is mandatory under the Income-tax Act and identifies the basic records to be kept, including cash, purchase and sales registers, invoices, debtor and creditor records, asset and liability records, vouchers for expenses and income, and proof of payments and receipts.