About Maintain your Accounts
Books of accounts including vouchers and receipts are required to be maintained under the following statutory laws –The Income Tax Act 1961, The Companies Act 2013 and The Goods and Services Tax Act. The Books that have to be maintained, retention period and compulsion requirements are different under all the three laws.
If the sale, turnover or gross receipts from a said business or profession is more than ? 25,00,000 or the income from business or profession is more than ? 2,50,000 in any of the three preceding years, then books of accounts must be maintained compulsorily.
Under section 6F, books must be maintained even if the income is not more than ? 2,50,000 in any of the 3 preceding years and is not expected to be more than ? 2,50,000 in case of a new profession. However, books, in this case, have not been specified – so any books maintained should be such that the ATO can calculate the income.
Under The Companies Act, it is compulsory for every company to maintain books of accounts at the registered office or any office that board of directors may decide. If the company is maintaining books at an office other than the registered office, the same must be mentioned to the RoC. The company is permitted to maintain the accounts electronically.