Is it compulsory for a professional to follow Cash system of accounting. Is it ok if he follows Mercantile system from past 10-15 years.
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Is it compulsory for professional to adopt cash system
Replies (2)
The income of a professional is generally taxed u/s 28. Thus Sec 145 of the Income Tax act applies. That sec gives freedom to him to choose either cash or merchantile system of accounting.
siva208 @ yahoo.com
Dear Aysuhraj.....
The Act does not restrict........he can follow either cash system or mercantile system......but consistency should be there........
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