It is generally seen that there is confusion among taxpayers about maintenance of books of accounts under Income Tax Act like who is required compulsorily to maintain the books of accounts and for how many years one has to keep his books of accounts. Section 44AA of Income Tax Act and rule 6F of Income Tax rules deal with the provisions regarding maintenance of books of accounts under Income tax Act. As per section 44AA(1) read with rule 6F the persons carrying on any of the profession as mentioned below are required to maintain books of accounts and other documents as may enable the assessing officer to compute his total income, if yearly gross receipts of the profession exceeded Rs 150000. Proviso to Rule 6F (1) provides that if the gross receipts of a profession do not exceed Rs 150000 in any one of the three years immediately preceding the previous year or where the profession has been newly setup in the previous year, his total gross receipts in the profession for that year are not likely to exceed the said amount, then such professional need not to maintain any books of accounts as mentioned in sub rule 2 of rule 6F.
It means that if the gross receipts of a profession exceed Rs 150000 in all the three years preceding the previous year only then the books of accounts will be required to be maintained, if the gross receipt exceed the prescribed limit in the two preceding years but not in the third preceding year then there will be no need to maintain books of accounts as contemplated in sub rule 2 of rule 6F.
It is more cost effective when hiring a bookkeeping service than hiring a casual or part time staff to do your bookkeeping.Read More
A book keeping service has the expertise and know how to look and review your accounts. The bookkeeper should be more flexible and should schedule meetings around the business owner’s busy work schedule and also produce reports and figures.Read More
A bookkeeping service puts you in control of your own cash flow, reduces tax liabilities and maximizes profits through management controls also provide a regular reporting service and to keep the processes up to date.Read More
A bookkeeper gives you a piece of mind that a regular reporting system is in place, processes are up to date, you are managing your cash flow, paying invoices on time and catching up on any unpaid invoices. So, the bookkeeper is ensure to do these things for you so that you just have to focus on managing your business.Read More