1. Books or books of accounts includes ledgers, day books, cash books, account books and other books, whether kept in the written form or as print-outs of data stored in a floppy, disc, tape or any other form of electro-magnetic data storage device.
2. Document includes an electronic record as defined u/s 2(1)(t) of the Information Technology Act,2000.
3. Maintenance of books of accounts is compulsory in the following cases-
- Specified professionals: Assessee carrying on profession of law, medicine, accountancy, architecture, technical consultancy, interior decoration, authorized representative, film artist, information technology professionals whose gross receipts exceed Rs.1,50,000 in all the prior three years or during current previous year in which business is commenced.
- Others:
- Where income from business or profession exceeds Rs.1,20,000 in any of the three preceding previous years or likely to exceed during the current year, or
- Where the turnover or sales or gross receipts exceeds Rs.10,00,000 in any of the three preceding previous years or likely to exceed during the current year,
- Declaring lower income than as prescribed u/s 44AD or 44AE or 44AF or 44BB or 44BBB.
4. The following books are to be maintained:
5. Consequences of non-maintenance of books of accounts: Under section 271A, failure to maintain books of accounts, documents etc, in accordance with section 44AA will attract a penalty of Rs.25,000.
6. Time period where assessment has been reopened: In cases where the assessment in relation to any assessment year has been reopened u/s 147 of the Income Tax Act, within the period u/s 149, all the books of accounts and other documents which were kept and maintained at all time of reopening of the assessment shall continue to be so kept and maintained till the completion of such assessment.
