Documents to be maintained as per Section 44AA with Rule 6F
Make sure that you maintain the following books of account to avoid any penalty:
- A Cash Book: It is a book of accounts where day to day cash transactions, i.e. cash payments and receipts are recorded.
- A Journal: A profession should maintain a journal as per the mercantile system of accounting. In this journal, day to day transactions are recorded using double entry system of accounting.
- Ledger: A ledger where all entries flow from the journal, has details of all accounts, this can be used to prepare the financial statements.
- Photocopies of Bills: Keep photocopies of all such bills which exceed Rs 25 in value.
- Original Bills: Keep original bills and receipts of your expenses safely with you. In cases where your expenses exceeded Rs 50 but you were not issued any bill or receipt then you should get payment vouchers prepared and signed by the concerned person.
- Being a medical professional, you need to maintain some additional documents specified in sub-rule (2).
- A daily case register in Form No. 3C.
- An inventory as on the first and the last day of the previous year, of the stock of drugs, medicines and other consumable accessories used for the purpose of his profession.
- The books of account and other documents specified in sub-rule (2) and sub-rule (3) shall be kept and maintained for period of eight years from the end of the relevant assessment year.