The corresponding section of the Income-tax Act, 2025 (formerly Section 44AA of Income-tax Act, 1961) / Section 35 of CGST Act, 2017 / Section 128 of Companies Act, 2013

MSME Accounting & Bookkeeping Services

End-to-end accounting, double-entry bookkeeping, GST return reconciliation, and ledger maintenance for MSMEs, proprietorships, and partnerships under the corresponding section of the Income-tax Act, 2025 (formerly Section 44AA) and Section 35 of the CGST Act.

CA Due Diligence

Official Portal Filing

State Stamp Advisory

MSME Accounting & Bookkeeping Services Statutory Advisory

Statutory Filing

MCA & Tax Practice

Relevant RegulatorCentral Board of Direct Taxes (CBDT), Central Board of Indirect Taxes and Customs (CBIC) & Ministry of Corporate Affairs (MCA)

incometax.gov.in

External link to the official website of the relevant authority. H A V N & COMPANY is not affiliated with any government authority.

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STATUTORY OVERVIEW

Professional SME Accounting, Bookkeeping & Statutory Tax Reconciliation

For small and medium enterprises (MSMEs), sole proprietors, partnership firms, and growing startups, maintaining accurate day-to-day books of account is not merely good commercial practice—it is a strict statutory mandate. Under the corresponding section of the Income-tax Act, 2025 (formerly Section 44AA of the Income-tax Act, 1961) and Section 35 of the CGST Act, 2017, failure to maintain prescribed books of accounts (cash books, sales/purchase journals, inventory registers, ledgers) attracts compounding monetary penalties under Section 271A and loss of input tax credits. Our managed accounting service delivers professional, cloud-based ledger maintenance with real-time tax compliance.

Statutory & Practice Summary • At-A-Glance

ICAI UDIN Authentication Mandate

Governing Framework

The corresponding section of the Income-tax Act, 2025 (formerly Section 44AA of Income-tax Act, 1961) / Section 35 of CGST Act, 2017 / Section 128 of Companies Act, 2013

Regulatory Authority

Central Board of Direct Taxes (CBDT), Central Board of Indirect Taxes and Customs (CBIC) & Ministry of Corporate Affairs (MCA)

Professional Assurance

Chartered Accountants Attestation under ICAI Standards & Code of Ethics

DOCUMENTATION MATRIX

Mandatory Documents Checklist

Self-attested scanned copies required

1. Promoters / Partners / Directors KYC

✓Monthly Sales Invoices & Credit / Debit Notes Issued
✓Vendor Purchase Bills, Utility Receipts & Inward Expense Vouchers
✓Current Account Bank Statements & Payment Gateway Settlement Reports
✓Monthly Payroll Sheets, Staff Advance Ledgers & Reimbursement Claims

2. Registered Office & Premises Proof

✓Fixed Asset Purchase Bills & Depreciation Schedules
✓Monthly GST Returns Filed (GSTR-1, GSTR-3B) & Auto-Generated GSTR-2B Ledgers
✓TRACES Form 26AS Statements & Annual Information Statement (AIS) Records
✓Previous Year Audited Balance Sheet, Trial Balance & Opening Stock Statements

PROCEDURAL ROADMAP

Step-by-Step Filing & Approval Process

Structured execution roadmap managed by our Chartered Accountants from pre-filing due diligence to certificate allotment.

01Standard

Setup & Ledger Architecture

Designing tailored Chart of Accounts in compliant cloud software (Tally Prime, Zoho Books) mapped to GST and tax codes.

02Standard

Weekly Transaction Posting

Systematic recording of sales bills, vendor vouchers, bank debits/credits, and payroll deductions.

03Standard

Monthly GST 2B & TDS Reconciliations

Cross-matching purchase ledgers with GSTR-2B on gst.gov.in and sales TDS with Form 26AS on incometax.gov.in.

04Standard

Month-End Close & Financial Statements

Generating monthly Profit & Loss statements, Balance Sheets, and Cash Flow summaries for business management.

Statutory Bookkeeping under Section 44AA (1961 Act)

Practice Scope & Statutory Guidance

We maintain immaculate double-entry books of account strictly compliant with the corresponding section of the Income-tax Act, 2025 (formerly Section 44AA of the 1961 Act) and Income Computation and Disclosure Standards (ICDS). We record all cash/bank disbursements, revenue invoices, vendor purchase bills, payroll registers, and fixed asset additions with complete digital voucher trails.

GST 2B Input Tax Credit Reconciliations

Practice Scope & Statutory Guidance

Under the Goods and Services Tax framework, claiming input tax credit (ITC) on invoices not reflected in GSTR-2B is strictly illegal and attracts interest under Section 50 of the CGST Act. We execute monthly dynamic reconciliations of purchase ledgers with auto-populated GSTR-2B data on gst.gov.in, identifying defaulting vendors before tax filing deadlines.

Quarterly TDS Ledger Reconciliations with TRACES 26AS

Practice Scope & Statutory Guidance

We reconcile customer TDS deductions reflected in Form 26AS and AIS on incometax.gov.in against sales accounts, ensuring zero withholding credit leakage. We verify that all contractor, rent, and professional payments made by the business have suffered appropriate TDS under Chapter XVII-B, preventing expense disallowances during tax assessments.

STATUTORY MATRIX

Statutory Provisions & Regulatory Comparative Matrix

Comparative analysis of governing sections under the new framework alongside legacy statutory references.

Compliance Obligation	Statutory Act & Section (2025 vs 1961)	Threshold & Mandatory Requirement	Statutory Authority / Portal
Maintenance of Books of Account	The corresponding section of the Income-tax Act, 2025 (formerly Section 44AA of 1961 Act)	Mandatory if business income exceeds Rs. 2.5 Lakh or turnover exceeds Rs. 25 Lakh	Income Tax Department / https://www.incometax.gov.in/
GST Accounts & Record Keeping	Section 35 of Central Goods & Services Tax (CGST) Act, 2017	True and correct accounts of production, inward/outward supply, stock, ITC claimed	GST Network / https://www.gst.gov.in/
Tax Audit Certification	Section 63 of Income-tax Act, 2025 (formerly Section 44AB of 1961 Act)	Mandatory CA audit if turnover exceeds Rs. 1 Crore (Rs. 10 Crores for digital transactions)	https://www.incometax.gov.in/
Audit Trail (Edit Log) in Software	Rule 3(1) of Companies (Accounts) Rules, 2014	Mandatory immutable edit logging for all incorporated entities	Ministry of Corporate Affairs / https://www.mca.gov.in/

ONGOING GOVERNANCE

Mandatory Post-Registration Compliances

Failing to complete statutory post-incorporation actions carries steep daily penalties. Our CA firm manages continuous compliance:

CompliancePeriodic

Monthly GST Filing & Remittance

Timely filing of GSTR-1 and GSTR-3B returns on gst.gov.in to maintain clean tax compliance ratings.

CompliancePeriodic

Quarterly TDS Return Filing (Form 26Q)

Electronic filing of non-salary TDS returns on incometax.gov.in by the 31st following each quarter.

CompliancePeriodic

Annual Income Tax Return (ITR-3 / ITR-5)

Compiling financial statements and filing annual returns for proprietorships, partnerships, and LLPs.

CompliancePeriodic

Tax Audit Readiness under Section 63 (formerly 44AB)

Preparing audit lead schedules and Form 3CD annexures if business turnover exceeds statutory audit limits.

FREQUENTLY ASKED QUESTIONS

Statutory FAQs & Practical Guidance

Frequently asked questions and procedural guidance regarding MSME Accounting & Bookkeeping Services.

Who is legally required to maintain books of accounts under the corresponding section of the Income-tax Act, 2025?

Under the corresponding section of the Income-tax Act, 2025 (formerly Section 44AA of the Income-tax Act, 1961 on incometax.gov.in), every person carrying on specified professions (legal, medical, engineering, architectural, accountancy, technical consultancy) or any business whose income exceeds Rs. 2.5 Lakhs or total sales/turnover exceeds Rs. 25 Lakhs in any of the three preceding years must mandatorily maintain books of accounts.

How long must accounting records be maintained under Indian tax laws?

Under the corresponding section of the Income-tax Act, 2025, books of accounts and related vouchers must be kept and maintained for a period of 6 years from the end of the relevant assessment year. Under Section 36 of the CGST Act, 2017, books and records must be retained for at least 72 months (6 years) from the due date of furnishing the annual return.

Why is monthly GSTR-2B reconciliation critical for small businesses?

Under Section 16(2)(aa) of the CGST Act, 2017, a taxpayer can only claim input tax credit (ITC) if the supplier has uploaded the invoice in their GSTR-1 and it is reflected in the recipient's auto-populated GSTR-2B on gst.gov.in. Claiming ineligible ITC leads to demand notices, mandatory reversal with 18% interest, and penalties.

Can your bookkeeping service integrate with our existing invoicing software?

Yes, our team works seamlessly with major cloud accounting and invoicing solutions including Zoho Books, Tally Prime, QuickBooks Online, and Excel billing systems.

STATUTORY ADVISORY DESK • PRACTICE INQUIRIES

Statutory Inquiries & Practice Advisory

Information on MSME Accounting & Bookkeeping Services is provided for general reference. Office addresses and contact details are listed on the Contact page.

Contact Practice Office +91 99140-14949