Bookkeeping is Mandatory for Schools
Yes, bookkeeping is mandatory for schools, colleges, universities, and professional schools in India. Properly maintained books of accounts are essential to ensure transparency, accuracy, compliance with tax regulations.
1. Legal Requirement:
The Income Tax Act of India requires educational institutions to maintain books of accounts and other documents related to their financial transactions.
These records must be kept for a minimum of six years from the end of the relevant assessment year. Failure to maintain proper books of accounts can lead to penalties and legal consequences.
2. Applicability:
This requirement applies to all educational institutions, including schools, colleges, universities, and professional schools, regardless of their size or level of operation.
Whether the institution is a private entity or government-funded, maintaining accurate records is essential.
3. Threshold and Exemptions:
There isn’t a specific income threshold that determines whether an educational institution must maintain books of accounts.
All educational institutions, regardless of their income, are expected to maintain proper records.
Even if an institution has just started, it’s important to begin bookkeeping from the outset. Proper bookkeeping practices help establish a clear financial trail, aid in decision-making, and facilitate smooth audits.
Educational institutions in India, including schools, colleges, universities, and professional schools, are legally obligated to maintain books of accounts and financial records.
There is no income limit for starting bookkeeping; even newly established institutions must adhere to these requirements to ensure transparency, accurate reporting, and compliance with Indian tax laws.
To visit: https://www.mca.gov.in/
For further details access our website: https://vibrantfinserv.com
