Maintenance of books of account u/s 44aa

This query is : Resolved

Tarun M Guntanur (Querist)
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23 March 2012 If my turnover is less than 60 lakhs for FY 2011-12, i need to declare Net Profit u/s 44AD by declaring 8% of turnover as income. It also iterates that only if we declare less than 8%, we need to maintain books of account. But Sec 44AA, tells us to maintain books of account if my turnover is more than 10 lakhs or income more than 1.2 lakhs.

So does it mean than Sec 44AD overrides Sec 44AA?

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Guest (Expert)

24 March 2012 Yes sec 44AD overrides sec 44AA. If v declare profit u/s 44AA den v dont need to maimtaim books of accounts

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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24 March 2012 You are ridding on 2 section one is 44AA and the other is 44AD. If the turnover and profit as mentioned in section 44AA exceeds the limit as prescribed then you are under obligation to maintain books of account but there is no obligation of getting the same audited. Hence, you are liable to maintain the books of account as soon as the limit as prescribed is exceeded. This problem in well taken care of in the Budget 2012.

Now, coming to the provision of Section 44AD you can file your return by showing minimum profit of 8% then no audited or accounts are required but if the profit is above 8% and you want to show the same as per your books of account then also there is no bar and still you can avoid the hassle with IT Department

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