Bookkeeping Mandatory for Architectural
Yes, bookkeeping is mandatory for Architectural, including those in the Engineering and Surveying Services sector in India.
Bookkeeping involves maintaining accurate and up-to-date financial records of all transactions, income, expenses, assets, and liabilities related to the business. It helps in proper financial management, tax compliance, and making informed business decisions.
◘ Legal Requirement:
Under the Income Tax Act, Section 44AA, individuals and businesses engaged in a profession like architecture, engineering, or surveying are required to maintain books of accounts if their gross receipts exceed Rs. 1,50,000 in any of the three previous years.
This means that if your gross receipts exceed this threshold, you are legally obligated to maintain proper books of accounts.
◘ Importance for Compliance:
Bookkeeping ensures that your financial records accurately reflect your business transactions.
It helps you calculate the correct amount of taxable income, claim eligible deductions, and accurately report your tax liability.
Proper records are also essential to respond to any queries or audits from tax authorities, helping you avoid penalties and legal issues.
◘ Starting Limit:
There isn’t a specific monetary limit for when you need to start bookkeeping; it depends on the gross receipts mentioned earlier.
Once your gross receipts cross Rs. 1,50,000 in any year, you are required to maintain books of accounts from that point onward.
It’s advisable, though, to start maintaining proper records as soon as you begin your business operations, regardless of whether you’ve reached the threshold.
This proactive approach helps you stay organized and compliant right from the start.
In summary, bookkeeping is indeed mandatory for Architectural, Engineering, and Surveying Services in India if gross receipts exceed Rs. 1,50,000. It’s not only a legal requirement but also crucial for accurate financial reporting, tax compliance, and effective business management. Starting early with bookkeeping can save you from potential hassles and ensure your business operates smoothly within the legal framework.
To visit: https://www.mca.gov.in/
For further details access our website: https://vibrantfinserv.com