Good books are the basis of every return, loan application and audit. Even where the law does not prescribe specific books, a cash book, bank book, sales and purchase registers, and a ledger are the minimum.
Certain professionals must maintain prescribed books under Rule 6F once their receipts cross set limits. Records generally need to be preserved for at least six years.
Key points
- Reconcile bank accounts monthly
- Keep GST invoices and expense bills digitally
- Separate personal and business accounts
- Close the books within a month of the year end
General information only, not professional advice. Section references are to the Income-tax Act, 1961; corresponding provisions of the Income-tax Act, 2025 apply from 1 April 2026. Thresholds and dates may change by notification.
CA Rahul Rajendra MohiteACA, M.Com · ICAI Membership No. 622387 · Founder, Rahul R. Mohite & Co., PuneFirm profile and key facts