Maintenance of accounts by persons carrying on business or profession - (New) Section 62 / (Old) Section 44AA

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....presentative or film artist, shall keep and maintain the books of account and other documents. Following books of account and other documents shall be maintained [ Rule 46(4) and (6) ] • (a) a cash book; or • (b) a journal, if the accounts are maintained according to the mercantile system of accounting; or • (c) a ledger; or • (d) for sums equal to or exceeding two hundred and fifty rupees, copies of bills or receipts issued by him; or • (e) original bills and receipts in respect of expenditure equal to or exceeding two hundred and fifty rupees incurred by the person and issued to him; or • (f) payment vouchers prepared and signed by the person, where the expenditure incurred does not exceed Rs. 250/-, and the cash book maintained by the person does not contain adequate particulars in respect of such expenditure; • In case of a person carrying on medical profession • (i) a daily case register in Form No. 25; • (ii) an inventory under broad heads, as on the first and the last day of the tax year, of the stock of drugs, medicines and other consum....

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..... 2,50,000 or • its total sales, turnover or gross receipts from such business or profession is likely to exceeds Rs. 25,00,000/-  during such tax year; or • (c) where during the tax year, the assessee referred to in section 58(2) or 61(2) (Table: Sl. Nos. 4 and 5), has claimed income from business or profession to be lower than the deemed profits as referred to in section 58(2) or section 61(2); or Other Relevant Point to be considered while maintaining the Books of Account • Place Where Books Must Be Kept [ Rule 46(7) ] • Clause (a): Single Place of Profession • If the professional carries on work from one location only, books must be kept at: • the place where the profession is carried on. • Clause (b): Multiple Places of Profession • If the profession is carried on from multiple locations, books must ordinarily be kept at: • the principal place of profession. • Clause (c): Separate Books for Each Location • Where separate books are maintained for each branch/location: • those b....

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....y of the following professions is required to maintain books of accounts:- • Legal • Medical • Engineering • Architectural • Accountancy • Technical Consultancy • Interior Decoration • Any other profession that may be notified by CBDT in future Books of Accounts to be Maintained by persons not covered above As per Section 44AA, persons carrying on the professions specified above are mandatorily required to maintain their books of accounts. However, the persons who are not covered in the list of professions specified under Section 44AA which are mentioned above are mandatorily required to maintain their books of accounts only if:- I. In case of a person (other than individual or HUF) • If the Income from Business or Profession exceeds 1,20,000 or the Total Sales/ Turnover/ Gross Receipts exceeds 10,00,000 in any of the previous 3 years. • If the Business or Profession is newly set-up, it would be required to maintain books of Accounts if the income from business or profession is likely to exceed 1,20,000 and the Tota....

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....3C  • Inventory Book (under Broad heads) as on the first and last day of the previous year of the stock of drugs, medicines and other consumable accessories used for the purpose of his profession. • Place at which books to be kept and maintained:-  The Books of Accounts and other documents shall be kept and maintained by the person at the place where he is carrying on the profession or, where the profession is carried on at more than 1 place - the books should be maintained at the principal place of business. However, in case separate books of accounts are maintained in respect of each place where the profession is carried on, the books of accounts may be kept and maintained at the respective place at which the profession is carried on. • Prescribed period:- All the books of Accounts specified above shall be kept and maintained for a period of 6 years from the end of the relevant assessment year. Amendment made by the Finance Act, 2022 "Books or books of account" include ledgers, day-books, cash books, account-books and other books whether kept in the written form or in electronic form or in digital form or as print-outs o....