Book Keeping & Accountancy, Mandating Laws

Book Keeping & Accountancy
Mandating Laws
1. According to Section 128 of the Companies Act, 2013, it is a legal requirement for every type of company, including private limited companies, public limited companies, and one-person companies has to maintain Company’s Books of Account in good order.

2. As per section 34 of the LLP Act 2008, limited liability partnership [LLP] requires to compulsory maintain proper books of account and statement of account & solvency relating to its business operation affairs.

3. Under Section 44AA of the Income Tax Act, every business entity (including sole proprietorships and partnership Firms) is obligated to maintain accurate books of account if their income surpasses INR 1,20,000/- (one lakh twenty thousand rupees) or if their total sales, turnover, or gross receipts exceed INR 10,00,000/- (ten lakh rupees) in any one of the three years prior to the current financial year.