1. A Company incorporated under the Companies Act 2013
As per section 128 of Companies Act 2013, every company shall prepare and keep at its registered office, books of account and other relevant books and papers and financial statement for every financial year which give a true and fair view of the state of the affairs of the company, including that of its branch office or offices, if any, and explain the transactions effected both at the registered office and its branches and such books shall be kept on accrual basis and according to the double entry system of accounting.
So, the companies are mandatorily required to maintain Books of Account as per the Companies Act in accordance with Accounting Standards or Indian Accounting Standards as applicable to them.
So, the above professionals should maintain Books of Account mandatorily irrespective of their Turnover and structure of business.
However, the above-listed individuals are not required to maintain account books if the business turnover in any of the previous years is less than Rs. 1.5 lakh or if the new business is not expected to cross gross receipts of Rs. 1.5 lakh.
Following are the additional requirements in case of a person carrying on medical profession — physicians, surgeons, dentists, pathologists, radiologists, etc.
These books should be maintained at the Head Office or at each of the offices.
Books of Accounts as per Income Tax Act are to be maintained for a period of 6 Years from the end of the relevant Assessment Years.
If any person fails to keep and maintain any such books of account and other documents as required by section 44AA or under Rule 6F, in respect of any previous year or to retain such books of account and other documents for the period specified in the said rules, then the Assessing Officer may direct such person to pay penalty, a sum of Rs.25000.
However, if the Tax Payer provides reasonable justification to the satisfaction of the Assessing Officer , such Penalty may not be levied.
1. Bank Statements
2. Cash Vouchers
4. Fixed Asset Registers
Apart from complying with various Laws and Regulations , maintaining proper Books of Accounts will help a business entity :
We, FIRSTMAN have a network of professionals who apart from assissting in preparing Books of Accounts, will also assist with corporate strategy, provide advice and help businesses to reduce costs, improve their top line and mitigate risks. They also offer advice on areas for enhancements.