Section(s) Referred: 44AA ,44AA(3)
Statute: INCOME TAX
Date of Issue: 12/1/1977
The following draft of certain rules further to amend the Income-tax Rules, 1962, which the Central Board of Direct Taxes proposes to make in exercise of the powers conferred by sub-section (3) of section 44AA, read with section 295, of the Income-tax Act, 1961 (43 of 1961), is hereby published for the information of all persons likely to be affected thereby ; and notice is hereby given that the said draft will be taken into consideration on or after the 1st day of March, 1977.
2. Any objection or suggestion which may be received from any person with reference to the said draft before the said date will be considered by the Central Board of Direct Taxes.
1. (1) These rules may be called the Income-tax (Amendment) Rules, 1977.
2. In Part II of the Income-tax Rules, 1962, after rule 6E and before Sub-Part D, the following Sub-Part shall be inserted, namely :–
“CC. Books of account.
6F. Books of account and other documents to be kept and maintained under section 44AA(3) by persons carrying on certain professions. — (1) Every person carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or authorised representative or film artist shall keep and maintain the books of account and other documents specified in sub-rule (2).
(2) The books of account and other documents referred to in sub-rule (1) shall be the following, namely :–
(i) a daily cash book ;
(ii) a journal, if the accounts are maintained according to the mercantile system of accounting ;
(iii) a ledger ;
(iv) duplicate copies of machine-numbered bills and receipts issued by the person ;
(v) original bills and receipts in respect of expenditure incurred by the person or, where such bills and receipts are not issued and the expenditure incurred does not exceed twenty-five rupees, payment vouchers prepared and signed by the person.
Explanation. — In this rule, —
(a) “authorised representative” means a person who represents any other person, on payment of any fee or remuneration, before any tribunal or authority constituted or appointed by or under any law for the time being in force, but does not include an employee of the person so represented or a person carrying on legal profession or a person carrying on the profession of accountancy ;
(b) “daily cash book” means a record of all cash receipts and payments, kept and maintained from day to day, and giving the cash balance in hand at the end of each day ;
(c) “film artist” means any person engaged in his professional capacity in the production of a cinematograph film, whether produced by him or by any other person, as —
(i) an actor ;
(ii) a cameraman ;
(iii) a director, including an assitant director ;
(iv) a music director, including an assistant music director ;
(v) an art director, including an assistant art director ;
(vi) a dance director, including an assitant dance director ;
(vii) an editor ;
(viii) a singer ;
(ix) a lyricist ;
(x) a story writer ;
(xi) a screen-play writer ;
(xii) a dialogue writer ; and
(xiii) a dress designer.
(3) A person carrying on medical profession shall, in addition to the books of account and other documents specified in sub-rule (2), keep and maintain the following, namely :–
(i) a daily case register in Form No. 3C ;
(ii) an inventory, as on the first and the last day of the previous year, of the stock of drugs, medicines and other consumable accessories used for the purpose of his profession.
(4) The books of account and other documents specified in sub-rule (2) and sub-rule (3) shall be kept and maintained by the person at the place where he is carrying on the profession or, where the profession is carried on in more places than one, at the principal place of his profession :
Provided that where the person keeps and maintains seperate books of account in respect of each place where the profession is carried on, such books of account and other documents may be kept and maintained at the respective places at which the profession is carried on.”.
3. In Appendix II to the Income-tax Rules, 1962, after Form No. 3B, the following Form shall be inserted, namely :–
“FORM No. 3C [See rule 6F(3)] Form of Daily Case Register
(To be maintained by practitioners of any system of medicine, i.e., physicians, surgeons, dentists, pathologists, radiologists, vaids, hakims, etc.)
—— Date S. No. Patient’s name Nature of professional Fees or charges for services rendered, i.e., services rendered general consultation, – surgery, injection, By By visit, etc. cash cheque Rs. Rs. —— (1) (2) (3) (4) (5) (6) ——
[No. 1620/F. No. 133(102)/76-TPL