Threshold Limit for Account Finalization
Yes, there is a threshold limit for account finalization for books and stationery in India. Under the Income Tax Act, 1961, businesses with a turnover of less than INR 20 lakhs not required to finalize their accounts annually.
However, businesses with a turnover of more than INR 20 lakhs are required to finalize their accounts annually, even if they sell books and stationery.
The threshold limit of INR 20 lakhs is applicable to all businesses, regardless of the industry they operate in.
This means that all businesses that sell books and stationery, including bookstores, stationery shops, and online retailers, are requir to finalize their accounts annually if their turnover exceeds INR 20 lakhs.
There are a few exceptions to this rule. For example, businesses that engaged in the export of books and stationery are not requir to finalize their accounts annually, regardless of their turnover.
If a business fails to finalize its accounts annually, it may be subject to penalties and interest under the Income Tax Act.
It is important to note that the threshold limit of INR 20 lakhs is subject to change from time to time. Businesses should always check with the latest regulations to ensure that they are compliant with the law.
To visit: https://www.mca.gov.in/
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