Applicability
1. As Per Rule F Section 44AA of Income Tax Act,1961, Following Persons are required to keep proper book of Account.
Notes:
2. Maintenance of Books of Accounts is one of the mandatory compliances that every company needs to follow. Whether it’s a private limited, public limited, OPC, or LLP, each of these entities requires obeying Section 128 of Companies Act, 2013 mandatorily. As per Section 128(1), every company must prepare and keep its books of accounts and other relevant books, financial statements, and papers at its registered office.
Following are benefit for keeping book of Account
In case of an Individual (resident or non-resident) or HUF or Association of Person or Body of Individual or any other artificial juridical person
Taxable Income |
Tax Rate |
---|---|
Up to Rs. 2,50,000 |
Nil |
Rs. 2,50,000 to Rs 5,00,000 |
5% |
Rs. 5,00,000 to Rs. 10,00,000 |
20% |
Above Rs. 10,00,000 |
30% |
Less: Rebate under Section 87A [see Note]
Add: Surcharge and Health & Education Cess [see Note]
In case of a resident senior citizen (who is 60 years or more at any time during the previous year but less than 80 years on the last day of the previous year)
Taxable Income |
Tax Rate |
---|---|
Up to Rs. 3,00,000 |
Nil |
Rs. 3,00,000 to Rs 5,00,000 |
5% |
Rs. 5,00,000 to Rs. 10,00,000 |
20% |
Above Rs. 10,00,000 |
30% |
Less: Rebate under Section 87A [see Note]
Add: Surcharge and Health & Education Cess [see Note]
In case of a resident super senior citizen (who is 80 years or more at any time during the previous year)
Taxable Income |
Tax Rate |
---|---|
Up to Rs. 5,00,000 |
Nil |
Rs. 5,00,000 to Rs. 10,00,000 |
20% |
Above Rs. 10,00,000 |
30% |
|
Add: Surcharge and Health & Education Cess
Note:- Rebate under Section 87A: The rebate is available to a resident individual if his total income does not exceed Rs. 5,00,000. The amount of rebate shall be 100% of income-tax or Rs. 12,500, whichever is less.
Note:- Health and Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of 4% of such income-tax and surcharge.