17 December 2009
My Client is doing business of Trading. The Gross Receipts, for the financial year 2008-09, is Rs.8.00 lakhs and Net Profit of Rs.80000/- He is also a partner in a Partnership firm and get Salary & Interest on Capital from the firm of Rs.60000/-. (i) Should he maintain books of accounts u/s 44AA of the IT Act, since both inocome from business exceeds Rs.1.20 lakhs. ( trading of business income alone is less than Rs.1.20 lakhs )
17 December 2009
As per Section 44AA (2) (i) since total income is exceeding Rs.1,20,000/- hence he is required to maintain books of account.
From the figures; it is clear that business run during the year is of retail nature; hence 44AF section is available and he can declare 5% or more as net profit of total turnover.
So practically you have to maintain only Sales Book (in support of your sales figures) for the business.
With The help of rest of figures; you can file your return of income.
In your case; you need not maintain detailed books of account.
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