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The book in which all accounts are maintained is known as |
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Answer» Income tax act is very specific when it comes to maintenance of books of accounts for professionals and non professionals. In this article we will discuss provisions of income tax act 1961 related to requirement of books of accounts to be maintained by a professional for income tax purpose.Section 44AA of income tax act 1961 specifies that every person carrying on following professions are required to maintain such books of accounts and other documents as may enable the assessing officer of income tax department to compute total income.In certain cases, CBDT has compulsorily specified to maintain books of accounts as per rule 6F of income tax rule. Let us discuss these provisions.Professions as specified in section 44AA;LegalMedialEngineeringArchitecturalTechnical consultancyInterior decorationFilm ArtistAuthorized representativeCompany SecretaryInformation technologyThese professionals are specifically required to maintain books of accounts as required in Section 44AA for income tax purpose. Section 44AA also talks about the timing of requirements to maintain books of accounts.Profession for section 44AA has been divided into Specified professions and non Specified professions. Specified professions are those who are coming under the list that we have listed above i.e. legal or medical or engineering etc.If your profession is not within the above list then that will be treated as non specified profession. Please remember CBDT can from time to time edit Ledger |
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