Special Information


List of Income Tax Documentation to be maintained by Doctors


Every Doctor should maintain regular and proper books of accounts supported by supporting vouchers for expenditure. If the accounts are
found to be correct and complete supported by supporting voucher, expenditure actually incurred for the purposes of the profession shall be
Allowable irrespective of its quantum.

Prescribed books which are to be maintained by doctors and other specified professionals as per Section 44AA of the Income Tax Act,1961 are 
as follows:
a. A cash book (i.e., a record of all cash receipts and payments kept and maintained from day to day and giving the cash balance in hand of
each day or at the year end of a specified period not exceeding a month);
a journal, if the accounts are maintained according to the mercantile system of accounting;
c. a Ledger;
d. carbon copies of bills (whether machine numbered or, otherwise serially maintained) exceeding Rs. 25, issued by you and carbon copies or
counterfoils of machine numbered or otherwise serially numbered receipts issued by you;
e. original bills wherever issued to you and receipts in respect of expenditure incurred by you and where the expenditure incurred does not
exceed 50 rupees, payment vouchers prepared and signed by you.
In addition to all the aforesaid Books of accounts and documents, Doctors are required to keep the following Books/documents:
a. A daily cash register in Form No. 3C, showing Date, SI. No., Patient’s name, Nature of Professional, i.e., general consultation, surgery,
injection, visit, etc., Fees received, Date of Receipt.
b. An inventory under broad heads as on the first and last days of the previous year, of the stock of drugs, medicines and other consumable
Accessories used for the purpose of profession
All the aforesaid books of accounts and documents should be kept and maintained for a period of 6 years from the end of the relevant
assessment year and at the place where you are carrying on the profession or where the profession is carried on in more places than one at the
principal place of profession.

 

In addition to above, a person carrying on medical profession shall, in addition, required to maintain a daily case register in the
prescribed Per-forma as shown below:

  • Date
  • Serial. No.
  •  Patient’s name 
  • Nature of service --- 

 i.e.,
general 
consultation,/ 
surgery, injection,/ 
visit, etc.

  • Fees received
  •  Date of Receipt

Failure to maintain books of accounts and other documents or to retain them as required attracts penalty of Rs. 25,000. The penalty can be
Imposed by the assessing officer or the higher authority.