ACCOUNTING METHOD SEC. 145

Devendra (Chartered Accountant) (4775 Points)

17 October 2010

WHILE PREPARING THE BOOKS OF ACCOUNTS OF PROFESSIONALS, DOES THE ASSESSEE HAVE TO FOLLOW CASH SYSTEM OF ACCOUNTING ? IS IT COMPULSORY?

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3 Replies

(Guest)

No, it is not compulsory. Income shall be computed only on either cash or mercantile system of accounting regularly followed by the assessee.

CA Himanshu Bansal (Risk Manager) (2345 Points)
Replied 18 October 2010

Originally posted by : Deep @ k Gupt/\
	No, it is not compulsory. Income shall be computed only on either cash or mercantile system of accounting regularly followed by the assessee.

Agreed with Deepak.He can follow either of the method, cash or accrual.

CA Shiv (Business Controller) (2987 Points)
Replied 19 October 2010

But once any method is adopted, it can not be changed in the future years.

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