ITR
Books of account for traders and professionals
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Facts
Individuals in business must keep books under Sec 44AA (now Sec 62) if income exceeds ₹2.5 lakh or turnover exceeds ₹25 lakh in any of the three preceding years. Specified professionals have their own thresholds.
Provisions and law
- Sec 44AA, Income-tax Act 1961 (now Sec 62, Income-tax Act 2025)Books of account must be kept by professionals and businesses above the income or turnover limits
- Sec 28, Income-tax Act 1961 (now Sec 26, Income-tax Act 2025)Profits and gains of business or profession are taxable
Analysis
For a trader, books can be simple: broker statements, bank statements, a ledger and expense bills. Example: F&O income of ₹3 lakh in FY 2024-25 means books are needed for FY 2025-26. If no books are kept, fill the no account case details in ITR-3 where allowed, but keeping books is safer for losses and audits.
Conclusion
- Check income and turnover for the last three years
- Keep broker contract notes and P&L
- Maintain a simple ledger of expenses
- Reconcile with bank statements yearly
A Savvy can do this for you
Business or professional income return, ITR-3 (including F&O and intraday)
₹4,999
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