Income Tax Act mandates professionals and businesses to obtain a tax audit from a Chartered Accountant and maintain accounts if the turnover or profit exceeds a certain amount.
What is Accounting?
Every business with turnover exceeding Rs. 10 Lakhs has to mandatorily maintain books and accounts as prescribed by the income tax department. Accounting is required to know the actual position of profit and loss of a business and take required decisions as per the profit of the business. It is also necessary to take note of the taxability and follow the applicable compliances.