Income Tax Act, 1961
- Every Person carrying on Business or Profession if their income from Business or Profession exceeds Rs.1,20,000 OR
Total Sales, Turnover, Gross Receipts in Business or Profession exceeds Rs.10,00,000 in any one of the 3 years immediately preceding the previous year. - Where Business or Profession is newly set-up in any previous year, if their income from Business or Profession Likely to exceeds Rs.1,20,000 OR
Total Sales, Turnover, Gross Receipts in Business or Profession exceeds Rs.10,00,000 in any one of the 3 years immediately preceding the previous year. - Where Assessee opts in to declare their income deemed under section 44AE (Business of Plying, Hiring or lasing of goods carriages), 44BB (Business of Exploration of mineral oils etc.), 44BBB (Foreign companies engaged in construction of civil construction in certain turnkey power projects) and claimed their income lower than deemed income as specified in above section.
For Individual/HUF following limit of Income is applicable:
Total Income:
If Total Income is more than Rs.2,50,000 for any Individual/HUF carrying on Business/Profession in any one of the 3 years immediately preceding the previous year or likely to exceed for newly set-up.
Total Sales/Turnover/Gross Receipts:
If Total Sales/Turnover/Gross Receipts is more than Rs.25,00,000 in any one of the 3 years immediately preceding the previous year or likely to exceed for newly set-up.
Certain Professionals has to compulsorily maintained Books of Accounts as per Income Tax Act, 1961
- Legal Professionals
- Medical Professionals (additionally they have to maintain Daily case register and Inventory records)
- Engineering Professionals
- Architectural Professionals
- Accountancy or Technical Consultancy
- Interior Decoration Professionals
- Authorised Representative
- Film Artist
- Any other profession as notified by CBDT
Penalty in Contravention:
As per Section 271A, if Assessee fails to maintain Books of Accounts as per provisions of section 44AA then Penalty of Rs.25,000 may attract.
Companies Act, 2013
As per Section 128 of Companies Act,2013 and Companies (Accounts) Rules, 2014, All Companies irrespective of whether they are OPC/Private Limited or Public Limited (including LLP), has to mandatorily maintain Books of Accounts to be preserved for the period of not less than 8 Financial Years.
Penalty in Contravention of Act:
If Managing Director, whole time director in charge of finance, CFO or such other person who is responsible to maintain books of accounts, fails to do so, shall be punishable with fine which shall Not be less than Rs.50,000 and may extend to Rs.5,00,000.
Public Charitable Trusts:
Every Charitable Trust which are registered with Public Trust Act of respective States has to mandatorily maintain Books of Accounts and submit their Accounts to their Charity Commissioner Office of respective state every year.
In addition, they have to mandatorily prepare and maintain Books of Accounts under Income Tax Act,1961 and Foreign Contribution (Regulation) Act,2010 (if receiving donation from source which is outside India).
Co-operative Societies (including Co-operative Housing societies):
Societies registered under co-operative society Act, 1860 and registered in their respective state in India has to mandatorily maintain Books of Accounts.
Foreign Contribution (Regulation) Act, 2010:
As per Foreign Contribution (Regulation) Act,2010, Person who is receiving Foreign Contribution has to maintain proper books of accounts with regard to Foreign contributions and their utilization and submit the same to FCRA Authority every year.
Goods and Services Tax Act, 2017:
Every registered person under GST has to mandatorily maintain Books of Accounts at their Principal Place of business as per section 35, read with rule 56 of Central Goods and service tax Act,2017.