Who Are Required to Maintain Books of Accounts ?

1. Legal,Medical,Architectural,Engineering,Accountancy,Technical Consultancy,Interior Decoration,Authrised Representative before Tribunal ,Film Artist,Company Secretary and Information Technology professionals having gross receipts of Rs 1,50,000 per annum in any one of the three years immediately preceding the previous year.
2. Anyone carrying business or profession , other than 1 above , if total income from business or profession exceeds Rs 1,20,000 or total sales /gross receipt is above Rs 10 Lacs in any one of the three years immediately preceding the previous year.
3. Those persons who avail of Estimated Income Scheme under Section 44AD to 44AE are also required to maintain books of accounts if the profit is shown less than the stipulated under the relevant provision.

Rule 6F prescribes types of books and other documents to be maintained . But the rule provides for specific books only for professionals referred above in point 1. No books of accounts have been prescribed for businesses other than professionals. For persons carrying on business other than professions referred above, the books and other documents are to be maintained so as the A.O is in position to compute his/her/its total income.

For professionals , following books have been prescribed by Rule 6F:

• Cash Book
• Journal , if mercantile system of accounting is followed.
• Ledger
• Carbon copies of bills
• Original bills for expenses exceeding Rs 50

• (i) a daily case register in Form No. 3C;
• (ii) an inventory under broad heads,as on the first and the last day of the previous year, of the stock of drugs, medicines and other consumable accessories used for the purpose of his profession.