A variety of statutory laws, including the Income Tax Act, the Companies Act of 2013, and the GST Act, require that books of accounts, including vouchers and receipts, be kept. Under each of the three laws, there are different requirements for mandatory books, retention periods, and compulsion.
If the sale, turnover, or gross receipts from the business or profession exceeded Rs. 25,00,000 in any of the three years prior, or if the income from the business or profession exceeded Rs. 2,50,000, books of accounts must be kept.
The following professions are covered by this clause:
Therefore, those in the aforementioned professions must keep books of accounts if they earned more than Rs. 2,50,000 in any of the three years prior. If the expected income for a new profession is greater than Rs. 2,50,000, the professionals should keep the books of accounts
Books of accounts to be maintained as per the rule:
Additionally, books must be kept if the income was less than Rs. 2,50,000 in any of the three years prior or in the case of new profession, it is not anticipated to be more than Rs. 2,50,000. However, since no specific books have been mentioned in this situation, any books that are kept should be organized so that the ATO can determine the income. Six years after the end of the applicable year, books must be preserved.
All companies are required to keep books of accounts at their registered office or any other location that the board of directors deems appropriate. A company must inform RoC if its books are kept somewhere other than its registered office. The business has the option of keeping its accounts electronically.
After the end of the relevant financial year, books must be kept for a minimum of 8 years.
Books of accounts to be maintained:
Every registered individual is required to keep GST records at their principal place of business.
Duration for which the books need to be kept After the annual return was last filed (on December 31, that year), books and records must be kept for six years.