30 March 2010
As per income tax act,maintainance of book of accounts is required only if :-
1. In the instances of the following profession, maintenance of books of accounts is compulsory: - Legal - Medical (Form 3C has been prescribed as a Daily Case Register) - Engineering - Architectural - Accountancy -Technical Consultancy -Interior Decoration - Profession of Information Technology - Company Secretary - Authorised representative, and - Film Artist 2. Other than above, maintenance of books of accounts is compulsory if: (a) If income exceeds 1.20 lacs or the turnover exceeds 10.00 lacs in any three year preceding the previous year , or (b) in the first year of the business, the turnover or income is expected to cross the above limit, or (c) Profit claimed in the following businesses is lower than the deeming provisions: - Profits and gains of business on presumptive basis u/s 44AD - Playing, Hiring or Leasing Goods Carriage u/s 44AE
If it is small shop having less than 10 lac turnover, there is no need to maintain books of account. if exceed, the you have to maintian cash book. sale book, purchase book.
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