Companies Act: As per The Companies Act, Corporate Entities Required to Maintain their Books of Accounts.

1.Private Limited Company

2.Public Limited Company

3.Government Company

4.Section 8 Company

5.One Person Company

6.Limited Liability Partnership

Special Act: Mostly IRDA, RBI, SEBI Governs Following Entities to Maintain Books of Account.

Banking Company

Co-operative Bank

Mutual Fund (AMC) Company

Insurance Company

Stock Exchange Company and Member

Income Tax Act: Firstly Section 44AA and Rule 6F of The Income Tax Act for Maintain Books of Account. Secondly 44AB Governs Provision for Audit.

Corporate Entities

(ie. All Company, LLP, Partnership Firm, Trust, NGO, Etc) : Yes Compulsory to maintain Books of Accounts

Individuals:

Engaged in Activity of Specified Profession (Professionals/Person) : Compulsory to Maintain Books of Accounts

Read Specific Provisions for Specified Profession and Accounting Record to be Maintain (Read More….)

Professionals (other than Specified Profession): If the Gross Receipt/Turnover/Sales of Profession is more than 1,50,000 any of Last 3 Financial year then such person is required to maintain books of Accounts. If newly Set up Profession then Expected Turnover is More than 1,50,000 then such person is need to maintain records. otherwise its optional.

Person doing Business 

Having New Business: Maintain Books of Account if Expected Net Income is higher than Rs. 2,50,000. OR Expected Gross Receipt/Turnover/Sales is Higher than Rs. 25,00,000. Otherwise No Need to maintain Accounting Records.

Old Business: Maintain Books of Account if Net Income is higher than Rs. 2,50,000 in any of Last three Financial year. OR Gross Receipt/Sales/Turnover is more than Rs. 25,00,000 in any of Last Three Financial year. Otherwise No Need to maintain Accounting Records.

Where the income does not exceed Rs 2,50,000 or total sales, turnover or gross receipts are not more than 25,00,000 in all preceding 3 years: No Books of Account are required to be maintained. In case of a newly set up profession or business the same rule applies when income is expected to be less than Rs 2,50,000 or sales/turnover/gross receipts are expected to be less than Rs 25,00,000.

For Professions and Businesses covered under section 44AD, 44ADA and 44AE

Businesses covered under section 44AD and 44AE are not required to maintain any books of accounts.However taxpayers who claim that their income from business is lower than (8% Profit of Sales in case of Business, 50% profit of Gross Receipt in case of Professionals) the presumed income calculated under section 44AE must maintain books of accounts as specified in section 44AA and have them audited under section 44AB.

A taxpayer may shifts from presumptive taxation under section 44AD/44ADA to normal taxation to claim that their income from business or profession is lower than the presumed income calculated under section 44AD/44ADA. In such a case, where the income exceeds the basic exemption limit of Rs 2,50,000, books of accounts as required under section 44AA have to be maintained and audited as per section 44AB.

In the case of a taxpayer whose turnover was less than Rs 25 Lakh, but having total income above the maximum amount not chargeable to tax, are excluded from maintenance of books of accounts as per 44AA.

Show Minimum Presumed Profit and Avoid Tax Audit and Books of Account Maintaining.

Min. Profit in 44AD (Business) : 8% of Sales (if Turnover through otherthan Banking Channel) , 6% of Sales (if Turnover is through Banking Channel)

Minimum Profit in 44ADA (Profession) : 50% of Gross Receipt.

• There is NO Specific list of records, But All the essential record which can help assessing officer (AO) to calculate Total Sales, Expense and Income. Record to be Maintain for 6-8 Years.
• If Audit is applicable then all the records with Double Entry Accounting System.

At Registered Office of Business or at the principal Place of Business.

• If Fails to comply Penalty is: Rs. 25000
• Penalty In case International Transaction; 2% of Value of Transaction.

NO, Prima facie Requirement of Audit is Complete Accounting Records should be present. Such Accounting Records shall be prepared with Double Entry Accounting System. So, without Accounting Records Auditor Cant do Audit. He may Give Opinion by Qualify/Negative Audit report.