Tuesday, December 31, 2013

Income Tax :- Requirement of Books

In my business, it is impossible to issue bills for every transaction. How can I be expected to maintain proper accounts?

              There can be no excuse for not maintaining bill books. However, if you are a small time retail trader with your annual turnover less than 40 lakhs, then you are permitted to declare your income on presumption at 5% of your actual sales (u/s 44AF). In this case, no books of account need be maintained. Similarly, the benefit of non-maintenance of books of account is available for civil contractors [u/s 44AD] in case 8% of the turnover is disclosed as profits. Transporters owning less than ten goods carriage can also avail the benefit of presumptive income scheme without maintenance of books of account. However, if you declare your income below the minimum level / percentage provided under the scheme, you will necessarily have to maintain the books and get them audited.

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