Book of Accounts

How to keep a book of accounts individually by an F&O trader/Speculative trader?
Please confirm whether Balance Sheet and P&L statement required for filing ITR-3 by an equity trader. Can I prepare these documents on personal capacity?

Useful for traders for better understanding about their funds and account.

Books of accounts for F & O trader is easy as most of reports comes from Broker which can be used for your books. Now on your part you can cross verify with your Bank statement and small reco between your Bank transactions with that Brokers reports.

Balance sheet & P& L need to be filled for ITR 3 . And from FY 2017-18 its required for ITR 4 as well. You need to put couple of hours on this , you can do this.

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Thanks for the information.
Is there any document format to keep Book of Accounts for a trader other than keeping all statements related to trade?
Also I assume that the Balance Sheet & P&L statements are limited to income/loss out of trading only and nothing to do with other income. Is it true?

When you prepare a Books , its for Individual and I department has made compulsory for a person who is earning more than 50 Lacs to declare all Assets & Liabilities. So the way its going , it will include all type of Incomes.

Sir, I need some more clarity. You didn’t mention about the format of Books of Account. What should be the status of Balance Sheet & P&L statement when the total income earned is less than 50 Lakh?

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As per rule law . For how many years should I maintain books of accounts?
What if I did not maintain?
What if I did maintain but lost it now ?

Hey @RLM

Under section 44AA one is required to maintain the books for a period of 6 years from the end of the relevant assessment year. In case you fail to maintain the books of accounts and other documents, a penalty of INR 25,000 will be levied to you under section 271A. However, providing a reasonable cause for the failure to maintain accounting records may result in no penalty being levied on the taxpayer.

Hope this helps!

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Is P&L statement from Zerodha enough considered as Books of account for FnO income while filing ITR3 ?

how to prepare books of account for FnO trader ?

Any body maintaining BOA themselves please make a tutorial.