Books of Accounts

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 February 2011 Dear All
If iam Starting a new business of packing material WHAT ARE THE COMPULSORY BOOKS I NEED TO MAINTAIN as per incometax act 1961.
so that in future if i face any scrutiny i would not face any problem.
[shouldnt these basic things the GOVT. should take initiative to spread to every individual. instead of just forcing tax and penalties]

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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20 February 2011 The following records you have to maintain :

1. Cash Book
2. Bank Book
3. Journal
4. Sales Register
5. Purchase Register
6. Stock Register

( for quantity movement Op. Bal. + Purchases - Sales = Closing Stock )

7. Ledger

When you use a software to maintain your accounts then by passing a journal entry all the above books are automatically generated.

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The Most Important Point :

If your physical cash and stock tallies with your books of account all the time; you need not worry with any of the government department.

For above; you should maintain your books of account up-to-date all the time.

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The above are the primaring requirement to maintain books of account.

But while maintaining books; you have to follow provisions of Income-Tax also to avoid unnecessary hardship from the department.

For this, you can hire the services of a professional like CA, CWA or CS who is engaged in practice of Taxation.

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CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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20 February 2011 For your rest of the query part :

[shouldnt these basic things the GOVT. should take initiative to spread to every individual. instead of just forcing tax and penalties]

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There are already certain professional like CA, CWA and CS courses to know all about this.

Even our B.Com. degree is designed to have all this knowledge but unfortunately students take it as a matter of passing in the exams to collect degree and then blame that these degrees are not of any use.

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