Every person carrying on legal, medical, engineering or architectural profession, or profession of accountancy or technical consultancy or interior decoration or any other profession notified by the board (CBDT) in the official gazette is compulsorily required to keep and maintain such books of account in accordance with the provisions of the Income-tax Act. Authorized representatives, film artists, company secretaries and professionals of information technology have been notified for this purpose.
The board may prescribe by rules the books of accounts be kept
As per section 44AA (3) the board may, having regard to the nature of the business carried out by the class of persons, prescribed by rules, the books of accounts and other documents to be kept and maintained, the particulars to be contained therein and the form and the manner in which the place at which they shall be kept and maintained.
Prescribed books of accounts and documents to be kept and maintained under section 44AA (3) by the person carrying on certain professions [rule 6F]: Any person carrying on legal, medical, engineering or architectural profession of accountancy or technically prescribed books of accounts and documents. The prescribed books of accounts and documents under the Rule 6F (2) are as follows:
The vouchers mentioned above may not be prepared if the cashbook mentioned by the person contains adequate particulars in respect of the expenditure incurred by him.
“Cashbook” means a record of all cash receipts and payments, kept and maintained from the day to day and given to the cash balance in hand at the end of each day or at the end of the specified period not exceeding a month.
As per rule 6F(3) a person carrying in the medical profession shall, in addition to the above books of accounts and documents, keep and maintained the following also :
Circumstances were maintaining the prescribed books of account shall not be necessary: maintaining the prescribed books of account shall not apply in relation to any previous year in case of any person-
However, such a person has to maintain such books of accounts and other documents as may enable the Assessing Officer to compute his total income. Thus, a person carrying on a specified profession shall be required to maintain specified books of account:
The person carrying on a non-specified profession or carrying on a business [section 44AA (2)]
Every person carrying on a business or a profession shall keep and maintain books of accounts and other documents-
CONSEQUENCES IN CASE OF FAILURE TO KEEP ACCOUNTS
SECTION 271A prescribes penalty provisions for failure to keep and maintain books of accounts, etc., and also for not retaining them for the prescribed period. The quantum of penalty impossible is fixed at INR 25,000.
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