Guide to .. Tax Management ,Tax Planning and Tax Saving
 

Which Professional / Businessmen have to maintain Books of Accounts

A. The following PROFESSIONALS whose Gross Receipt from their profession exceeds Rs. 1,50,000 p.a. ( in any of the 3 immediate preceding previous years) have to maintain the books of account :    

(1)  Legal
(2)  Medical
(3)  Interior Decorator
(4)  Technical Consultancy
(5)  Film Artist
(6)  Engineering
(7)  Accountancy
(8)  Acting as an Authorized Representative before any Tribunal.

B. Every BUSINESSMAN whose income from Business exceeds Rs.1,20,000 p.a. or Gross Receipt/Turnover exceeds Rs.10,00,000 p.a. in any of the 3 immediate preceding previous years will have to maintain books of accounts as per the Act.

W.e.f. 4-2-2002 Books of Accounts & other documents are to be preserved for a period of 6 years from the end of the relevant Assessment Year.

Is it compulsory  for Retail Traders, Civil Contractors, Truck Owners to keep Books of Accounts. ?

There is a scheme called Estimated Income Scheme, the details of which are as under :
I.  Retail Traders :

Applicability :  Provision of section 44AF applies to all retail traders having turnover up to Rs. 40 lakhs in a year. Such retail traders shall declared their Net Income at 5% of the Turnover and shall be free from all obligations of maintaining  Accounts &   Audit. The Scheme is compulsory for all Retail Traders. However, if they opt to declare income at lower than 5% , they shall be      require to maintain the Accounts u/s 44AA and get the accounts audited u/s 44AB.

Eligibility :  The Scheme applies to all the assesses i.e. , Individuals, HUF, Firm, Company or any other Assessee, engaged in business of Retail Trade in any goods or merchandise, whose total Turnover does not exceed Rs. 40 lakhs.
The Scheme is available to existing as well as new Assessees. In case of an Assessee, the Profit of Retail Business may be computed under the presumptive scheme in one assessment year and under the normal provisions for the next year.

II.  Estimated Income Scheme for Civil Contractors :

Eligibility :  The Scheme provided under Section 44AD, applies to all assesses engaged in business of Civil Construction or supply of labour for Civil Construction work ( including the construction or repair  of buildings, dams, bridges, or other structures or of roads or canals, and execution of any other works contract.) whose Gross receipt from the said Business does not exceed Rs. 40 lakhs.

Estimated Income :  Under the Scheme , the income of an assessee shall be estimated at 8% of the Gross Receipts    relating to the Business, paid or payable to the assessee.
Advances and deposit receipts relating to construction activity will not form part of gross receipts.
An assessee may, however, declare a higher income in his      return. Income estimated under the scheme will be aggregated with other incomes of the assesses and subject to tax in accordance with the normal provisions of the Act.

III.  Estimated Income Scheme for Truck Owners :

Eligibility : The Scheme provided under Section 44AE, applies to assesses engaged in business of plying, leasing or hiring trucks, owning not more than 10 Trucks, at any time during the previous year.

Estimated Income :

(i)  Rs. 3,500 p.m. for each heavy goods vehicle, and

(ii)  Rs. 3,150 p.m. for each vehicle other than heavy goods vehicle.

The Income will be computed for each month ( or part thereof) during which the vehicle is owned by the assessee. An assessee may, however, declare a higher income in his return. Income estimated under the scheme will be aggregated with his other incomes and subject to tax in accordance with the normal provisions of the Act.

MORE TOPICS ...
Chat showing Computation of Income from Business or Professions : Gross Total Income
Is Audit of Accounts compulsory for Businessman.
Meaning of.. "Business or Professions" as per Income Tax Act.
Profits and Gains of.. 'Business or Professions' of GTI
Meaning of ‘ Set-Off & Carry Forward ’ of Business Losses
What are Deemed Profits and How they are charged to Tax : Gross Total Income
What Expenses can be Claimed as "Deductible Expenses" : GTI
'Expenses Not Deductible' under 'Profits and Gains of Business'
Which Professional/Businessmen should Maintain Books of Accounts
 
 
 
 
 
Get.. Tally.ERP9 Book + GST Practical Assignment @ Rs.550 Tally.ERP9 Book Online Order Tally.ERP9 Book Content
 
© 2018 : IncomeTaxManagement.Com