Sec 44ada it filer books of accounts exempt or mandatory

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kollipara sundaraiah

kollipara sundaraiah (Querist)
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04 May 2024 Sir,
Sec 44ada provision itr filed person books of accounts maintained mandatory or exempt.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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04 May 2024 Not mandatory, but statement of amounts received by cash & bank are required to be maintained, along with receivables, if any.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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04 May 2024 is it relevant for 44ADA? separation of cash and bank?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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04 May 2024 Naturally not for ITR, but for confirmation of cash receipts.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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06 May 2024 i think, if the intent is to report, then confirmation of cash receipt is not going to be something that I would record as a professional. If the intent is not to report, then anyway i am not recording. The whole point of 44ADA being not maintaining any records. maintaining cash records could and would only complicate other compliances.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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06 May 2024 There is no specific rule how you maintain the records of the receipts, which is the only compliance under sec. 44AD/44ADA. Even during query/scrutiny these record is verified. Practically, we have found it useful to record it in two different columns, which saves time in future, in case it is needed.