They required to perform Account Finalization for Architects in India if their gross receipts of profession exceed Rs. 50 lakhs in a financial year. This is under Section 44AB of the Income Tax Act, 1961.
Account Finalization is the process of preparing the financial statements of an architect for the year, which then audited by a chartered accountant.
The financial statements should be accurate and complete, and they should be prepared in accordance with the Generally Accepted Accounting Principles (GAAP).
The purpose of Account Finalization is to ensure that the architect’s financial statements are accurate and compliant with the law. It can also help to protect the architect from financial losses and legal penalties.
Here are the steps involved in Account Finalization for them in India:
• Collect all of the financial records for the year:
This includes invoices, receipts, bank statements, and other documents that support the architect’s income and expenses.
• Enter the financial records into a spreadsheet or accounting software:
This will help to organize the data and make it easier to prepare the financial statements.
• Prepare the financial statements in accordance with the GAAP:
This includes the balance sheet, income statement, and cash flow statement.
• Financial statements audit by a chartered accountant:
The chartered accountant will review the financial statements and issue a report to the architect and the Income Tax Department.
• They are responsible for ensuring that the Account Finalization process is complete correctly:
If there are any errors or omissions in the financial statements, they may be subject to penalties by the Income Tax Department.
Here are some of the benefits of performing Account Finalization for them in India:
- It can help to identify any errors or omissions in the financial statements.
- It can help to comply with the law and avoid penalties.
- It can give the architect peace of mind that their financial statements are in order.
If you are an architect with gross receipts of profession exceeding Rs. 50 lakhs in a financial year, you should perform Account Finalization.
This will help you to ensure that your financial affairs are in order and that you are compliant with the law.
To visit: https://www.mca.gov.in/
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