Section 44AA & Rule 6F: Books of Accounts for Revenue Tax

Part 44AA prescribes the individuals who’re mandatorily required to keep up books of Accounts for Revenue Tax functions. As per Part 44AA, any particular person carrying on any of the next professions is required to keep up books of accounts:-

• Authorized
• Medical
• Engineering
• Architectural
• Accountancy
• Technical Consultancy
• Inside Ornament
• Every other career that could be notified by CBDT in future

Part 44AA: Books of Accounts to be maintained by individuals not lined above

Section 44AA & Rule 6F  individuals carrying on the professions specified above are mandatorily required to keep up their books of accounts. Nevertheless, the individuals who should not lined within the listing of professions specified underneath Part 44 AA that are talked about above are mandatorily required to keep up their books of accounts provided that:-

• If the Revenue from Enterprise or Career exceeds Rs. 1,20,000 or the Complete Gross sales/ Turnover/ Gross Receipts exceeds Rs. 10,00,000 in any of the earlier 3 years. These limits have been elevated to Rs. 1,50,000 and Rs. 25,00,000 respectively from Monetary Yr 2017-18 onwards. (Announcement made in Price range 2017)
• If the Enterprise or Career is newly set-up, it might be required to keep up books of Accounts if the earnings from enterprise or career is prone to exceed the boundaries talked about above.
• If the taxpayer is roofed underneath Part 44AD/ Part 44AE/ Part 44AF and the taxpayer has claimed his earnings within the earnings tax return
•  to be decrease than the earnings or positive aspects deemed underneath Part 44AD/ Part 44AE/ Part 44AF respectively.

Rule 6F: Books of Accounts to be maintained

The class of individuals specified above underneath Part 44AA is mandatorily required to keep up the books of accounts as talked about under:

• Money Ebook
• Journal (if the Accounts are maintained in accordance with the Mercantile system of Accounting)
• Ledger
• Carbon copies of Payments, whether or not machine numbered or in any other case serial numbered, wherever such payments are issued by the particular person, and carbon copies or counterfoils of machine numbered or in any other case serial numbered receipts issued by him. Nevertheless, this requirement is not going to apply in relation to sums not exceeding Rs. 25,000.
• Authentic Payments wherever issued to the particular person and receipts in respect of expenditure incurred by the particular person. In case the payments and receipts should not issued and the expenditure incurred doesn’t exceed Rs. 50,000 – the Cost Vouchers ready and made by the particular person shall be saved. Nevertheless, the necessities as to preparation and signing of the cost vouchers shall not apply in a case the place the money e book maintained by the particular person comprises sufficient particulars in respect of the expenditure incurred by him.
• An individual carrying on Medical Career shall along with the books of accounts and different paperwork specified above shall additionally preserve the next:-
  • A each day case register in Kind 3C
  • Stock Ebook (underneath Broad heads) as on the primary and final day of the earlier 12 months of the inventory of medication, medicines and different consumable equipment used for the aim of his career.
• The Books of Accounts and different paperwork shall be saved and maintained by the particular person on the place the place he’s carrying on the career or, the place the career is carried on at greater than 1 place – the books must be maintained on the principal office. Nevertheless, in case separate books of accounts are maintained in respect of every place the place the career is carried on, the books of accounts could also be saved and maintained on the respective place at which the career is carried on.
• All of the books of Accounts specified above shall be saved and maintained for a interval of 6 years from the tip of the related evaluation 12 months.

Different Related Factors concerning Part 44AA & Rule 6F

1. Money Ebook means a Report of all Money Receipts and funds, saved and maintained on a day-to-day foundation and giving the money steadiness in hand on the finish of every day or on the finish of a specified interval not exceeding a month.
2. Movie Artist means any particular person engaged in his skilled capability  within the manufacturing of a cinematographic movie whether or not produced by him or some other particular person as:-
   1. Actor
   2. Cameraman
   3. Director, together with an Assistant Director
   4. Music Director, together with an Assistant Music Director
   5. Artwork Director, together with an Assistant Artwork Director
   6. Dance Director, together with an Assistant Dace Director
   7. Editor
   8. Singer
   9. Lyricist
   10. Story Author
   11. Display screen Play Author
   12. Dialogue Author
   13. Costume Designer