As per Section 2(12A): “Books or books of account” includes ledgers, day-books, cash books, account-books, and other books, whether kept in written form or as printouts of data stored in electronic media.” Further Rule 6F prescribes specified Books to be Maintained by Professionals as below Cash BooRead more
As per Section 2(12A):
“Books or books of account” includes ledgers, day-books, cash books, account-books, and other books, whether kept in written form or as printouts of data stored in electronic media.”
Further Rule 6F prescribes specified Books to be Maintained by Professionals as below
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Cash Book – Daily cash receipts and payments
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Journal – Chronological record of transactions (if mercantile system)
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Ledger – Summary of all accounts
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Carbon copies of bills issued (if over ₹25)
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Original bills for expenses above ₹50
Additional for Medical Professionals (Rule 6F(3)):
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Daily case register in Form No. 3C
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Inventory of medicines and consumables at year-end
Under the Income Tax Act, 1961, as amended by the Finance Act, 2025, the following categories of taxpayers are mandatorily required to get their accounts audited under Section 44AB for the Financial Year (FY) 2024–25 (Assessment Year 2025–26): 🔹 1. Businesses Turnover exceeding ₹1 crore: If the totRead more
Under the Income Tax Act, 1961, as amended by the Finance Act, 2025, the following categories of taxpayers are mandatorily required to get their accounts audited under Section 44AB for the Financial Year (FY) 2024–25 (Assessment Year 2025–26):
🔹 1. Businesses
Turnover exceeding ₹1 crore: If the total sales, turnover, or gross receipts exceed ₹1 crore in a financial year, a tax audit is mandatory.
Turnover between ₹1 crore and ₹10 crore: If the turnover is up to ₹10 crore and cash transactions do not exceed 5% of the total receipts and payments, a tax audit is not required. This promotes digital transactions and reduces compliance for businesses operating primarily through banking channels.
Turnover exceeding ₹10 crore: Regardless of the mode of transactions, if the turnover exceeds ₹10 crore, a tax audit is compulsory.
🔹 2. Professionals
Gross receipts exceeding ₹50 lakh: Professionals such as doctors, lawyers, architects, etc., must undergo a tax audit if their gross receipts exceed ₹50 lakh in a financial year.
Enhanced threshold to ₹75 lakh: If cash receipts do not exceed 5% of the total gross receipts, the threshold for mandatory tax audit is increased to ₹75 lakh.
🔹 3. Presumptive Taxation Scheme Optants
Section 44AD (Businesses): If a taxpayer declares profits lower than the prescribed rate (8% or 6% for digital transactions) and their total income exceeds the basic exemption limit, a tax audit is required.
Section 44ADA (Professionals): Professionals opting for presumptive taxation under this section must get their accounts audited if they declare profits lower than 50% of gross receipts and their total income exceeds the basic exemption limit.
🔹 4. Other Specific Cases
Section 44AE, 44BB, or 44BBB: Taxpayers declaring income lower than the deemed profits under these sections and whose total income exceeds the basic exemption limit are required to get their accounts audited.
⚠️ Penalty for Non-Compliance
Failure to comply with the tax audit provisions can attract a penalty under Section 271B, which is the lesser of:
0.5% of the total sales, turnover, or gross receipts, or
₹1,50,000.
However, if the taxpayer can demonstrate a reasonable cause for the failure, the penalty may be waived.
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