04 August 2019
One of my friend advocate earned a consultancy fee of Rs.65, 000 during the financial year 2018-2019. He wanted to offer 100% as income. Is he liable to maintain the books of accounts as per section 44AA and 44AA(1). What is the threshold limit for maintaining books of accounts for advocte? Please advise
05 August 2019
If the consultancy fee is arising out of exercising legal profession, no need to maintain books of accounts since gross receipts if less then 50 lakhs and income offered is not less than 50 % of gross receipts.
If the income offered is more than Rs.2,50,000/- and that income is less than 50% of the gross receipts, maintenance of books of accounts and other documents is mandatory.
Secondly, if gross receipts is more than Rs. 50 lakhs, books of accounts is a mandatory requirement.
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