Hisab kitab: rojmel, khatavahi and the books a small business must keep

Rojmel meaning and khatavahi meaning

Rojmel (રોજમેળ) is the daily record of cash and transactions, written in the order they happen. In plain terms, it is the cash book: money in on the left, money out on the right, with a closing balance each day. Khatavahi (ખાતાવહી) is the ledger: the same entries sorted account by account, so that one page shows everything with one customer, one supplier or one expense head. Example: your rojmel shows three lines on Tuesday for a yarn supplier, an advance, a part payment and a freight charge; the khatavahi gathers those and every earlier line into the supplier's single account, so you see at a glance what you still owe.

Between the two sit the day books: a sales book, a purchase book and the journal for adjustments. Accountants call the whole set "books of account". Tally or any billing software does the sorting for you, but the logic is identical, and a stranger should be able to follow it.

How to read a ledger book

Each ledger page has a name at the top, a debit side and a credit side, and a balance. In plain terms: for a customer, debit means he owes you more; credit means he has paid or returned goods. For a supplier it is the reverse. Example: a Surat sari wholesaler's ledger for a Delhi buyer shows ₹4,00,000 debit for April bills and ₹3,00,000 credit for payments received; the ₹1,00,000 difference is the debtor balance, which is exactly the figure that goes to the balance sheet and to the bank's stock and book-debts statement.

If the ledger balance does not match what the customer says, the rojmel date and the bill number let you trace it. That trail, entry to bill, is what an assessing officer and a credit officer also follow.

Who must keep books of account?

The answer depends on what you are. A summary, not a substitute for the Act:

• Company: section 128 of the Companies Act, 2013. In plain terms, books must be kept at the registered office, on an accrual basis and by double entry, whatever the size. Example: a small private limited company with ₹30 lakh turnover still keeps full double-entry books.
• Income tax, all taxpayers: section 62 of the Income-tax Act, 2025, which has replaced section 44AA from 1 April 2026. In plain terms, books are required if income from the business exceeds ₹1.2 lakh or turnover exceeds ₹10 lakh in any one of the preceding three years; for an individual or HUF the limits are ₹2.5 lakh and ₹25 lakh. A new business applies the same limits to what it expects to earn in its first year.
• Specified professions (legal, medical, engineering, architecture, accountancy, technical consultancy, interior decoration, information technology and company secretary work, plus any the Board adds) must keep books under the same section on their own gross-receipt test.
• Low declared profit: a taxpayer who claims a profit lower than the presumptive profit the Act deems (section 58(2) or 61(2)) must keep books even below the limits.
• GST-registered person: section 35 of the CGST Act, with Rule 56. In plain terms, you must keep a record of goods and services bought and sold, stock, input tax credit and tax paid, at your place of business, at any turnover.

Example: Meera Textiles, a Surat partnership firm, turns over ₹18 lakh; books are required, because ₹18 lakh is above ₹10 lakh. The proprietor next door, with the same turnover and a ₹3 lakh income, also needs books, because income crossed ₹2.5 lakh even though turnover did not. Either test is enough.

Books are not kept for the tax office. They are kept so that the owner, the bank and a stranger can all reach the same number.

What books should a small trader keep?

For a business that does not need the full statutory set, a practical minimum is: a cash book (rojmel), a bank book, a sales register, a purchase register, party-wise ledgers (khatavahi), a stock register and a fixed-asset register. Keep copies of bills issued and received, and bank statements. The Income-tax Rules prescribe the particular books for those who must keep them; confirm the current rule, as the Income-tax Rules, 2026 replaced Rule 6F.

Example: a Surat trader whose cash sales go straight to a drawer and whose purchase bills are in a bag has a problem not at filing time but later, when the ledger cannot be reconciled with GSTR-3B or with the bank statement. A rojmel written daily, with the cash counted against it each evening, avoids this.

How long should books be kept?

Companies must preserve books for not less than eight financial years (section 128(5)). A GST registered person must keep accounts and records until 72 months after the due date of the annual return for that year (section 36). Example: records for FY 2025-26 have a GSTR-9 due on 31 December 2026, so they must be kept until 31 December 2032, or longer while an appeal or investigation is open. For income-tax books, section 62(3) leaves the period to the Rules.

Digital hisab kitab

Handwritten books are still valid, but software has two advantages: GST returns can be reconciled with GSTR-2B quickly, and a bank can see consistent numbers. A company keeping books electronically must keep backups on servers physically in India, as the Companies (Accounts) Rules require. Whichever route you choose, write the date, the party, the bill number and the amount on each line.

This article gives general information, not advice on a specific case. Thresholds and rules change; verify against the Act and Rules in force.

This article is general information, not professional advice. Rules change; verify current provisions or contact the office for advice on your situation.