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Individuals in business must keep books if income exceeds ₹2,50,000 or turnover exceeds ₹25 lakh in any of the three preceding years, as per Sec 44AA. Broker statements, bank statements and expense bills often form the core.
ITR
Books of account for traders
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Provisions
Sec 44AA (now Sec 62); Rule 6F, Income-tax Rules 1962 (now Rule 46)
Analysis
A trader with F&O turnover of ₹40 lakh should keep a simple ledger: broker ledger, bank book, expense register and a capital account. If total income is small and turnover low, you may not be required to keep books, but records are still useful for loss claims. Failure to keep books when required can attract penalty.
Close
- Check income and turnover against the limits
- Download broker ledger and contract notes for the year
- Keep a bank book and expense register
- Prepare a simple P&L and balance sheet for ITR-3
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