Maintenace of Books of Accounts u/s 44AA

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ravikanth (Querist)
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18 December 2009 My Client is doing business of Manufacturing. during the previous year 08-09 the total gross receipts of business is Rs.9.00 lakhs and a net profit is Rs.90,000/- He is also getting a salary & interest on partners capital and current from a partnership firm Rs.65000/- for the same year 08-09. (i) should he maintain books of accounts u/s 44 of the IT Act since both income exceeds Rs.1.20 lakhs ( manufacturing of business income alone is less than Rs.1.20 lakhs )

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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18 December 2009 As per section 44AA; books of account should be maintained if income from business
exceeds Rs.1,20,000/-

But your client seem to have retail business for which Sec. 44AF is applicable and net profit can be shown 5% or more of turnover.

So you can adopt that alternative available and maintain sale records to prove the sales.

Rest of income can be shown as received from firm and firm is already maintaining the books of account.

CA Rakhecha,Surat