Do I have to maintain Books of Accounts with this income?

Question

My income as a freelancer, which comes around 7 to 8 lakhs gets deposited in my Bank A/C for which I m e-filing return and paying Tax.
Will I have to maintain Books of Accounts?
If my income increases, will I have to get my passbook audited?

SANTOSH KUMAR · Answer

Search provisions of section 44AA of Income Tax Act 1961 which explains the situation in which one has to maintain Books of Accounts. Section 44AB and Section 44AD of said act explains the situation in which books of account are required to be audited by a practicing CA.

Anonymous · Answer

Do not go to these sites. They will steal your credit card information.

? · Answer

If your income (gross receipts) exceeds Rs.25,00,000, then your books have to be get audited. 
Regarding Account Books, It is always better to maintain books. Simply note down your income and expenditure date wise.

srk · Answer

Thanks for the reply. Could you also pls let me know if there is a limit after which one HAS to audit their account/ passbook. Is there a law about it.

Thanks again.

ibu guru · Answer

Of course you must maintain complete records of all income & expenses! You need this for your own use - to track success of your business, what you are spending to earn that income, what you have saved for future investments in your business (e.g. to buy new, updated, upgraded equipment). It's not only for Tax Man.

Tavy · Answer

Yes , anyone who is self employed HAS to keep accounts.

Do I have to maintain Books of Accounts with this income?

6 Answers