Threshold Limit for Bookkeeping for Traders
There is no threshold limit for bookkeeping for traders, books and stationery in India. However, businesses with a turnover of Rs. 1,20,000 or more in any of the three preceding years are required to maintain books of accounts under the Income Tax Act, 1961. This includes records of all purchases and sales, as well as assets and liabilities.
The books of accounts must be maintained in accordance with the generally accepted accounting principles (GAAP).
This means that they must be accurate, complete, and up-to-date. The books of accounts must also be preserved for a minimum period of six years.
Businesses that fail to maintain books of accounts or keep them in accordance with GAAP may be subject to penalties under the Income Tax Act.
To visit: https://www.mca.gov.in/
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