Legal Profession

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 November 2010 I am a Advocate doing practice in High Court. I am filling IT return every year. I have to know, I have filed from many year but not maintain any records for these. now my receipts from prof. is around 3 lacs. now Do I need to Maintain regular Records ? what kind of records to be maintained & from which limit ? How to maintain (guide as you know about advocate Prof. transaction)? (No Bill,No Receipts,No Proof)

CA.Madhusudan B.P.

CA.Madhusudan B.P. (Expert)
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10 November 2010 Please refer the following link.
Sec 44AA(1) is clear It begins with the words "Every person carrying on LEGAL, MEDICAL...... etc., shall maintain the books of accounts & other documents as may be enable the Assessing Officer to compute the total income inaccordance with the provision of Income Tax Act,1961

Insofor as you CONVINCE the AO, you can continue the exising practice (No Bill,No Receipts,No Proof)But suggested to atleast maintain the Cash book, Bank books, Receivables etc., which are useful to know the position of fee receivable from your clients etc.,

http://law.incometaxindia.gov.in/DIT/File_opener.aspx?page=ITAC&schT=&csId=03b08d89-2af7-4ef4-87fb-0267b4282d2d&rdb=sec&yr=75996b99-a798-4098-bca8-e66ee23fe426&sec=44AA&sch=&title=Taxmann - Direct Tax Laws