U/s 44aa and u/s 44ab

This query is : Open

Manoj Prasad (Querist)
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24 March 2013 for a private limited company

when it will be applicable in ITR-6 as (yes/no)

1-44AA
2-44AB

Plz advice, whether it depends on turn o0ver or Net profit

regards

raghavender upadhyay

raghavender upadhyay (Expert)
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24 March 2013 [Maintenance of accounts by certain persons carrying on profession or business.
544AA. (1) Every person carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or any other profession as is notified6 by the Board in the Official Gazette shall keep and maintain such books of account and other documents as may enable the 7[Assessing] Officer to compute his total income in accordance with the provisions of this Act.
(2) Every person carrying on business or profession [not being a profession referred to in sub-section (1)] shall,—
(i) if his income from business or profession exceeds 8[one lakh twenty] thousand rupees or his total sales, turnover or gross receipts, as the case may be, in business or profession exceed or exceeds 9[ten lakh] rupees in any one of the three years immediately preceding the previous year; or
(ii) where the business or profession is newly set up in any previous year, if his income from business or profession is likely to exceed 10[one lakh twenty] thousand rupees or his total sales, turnover or gross receipts, as the case may be, in business or profession are or is likely to exceed 11[ten lakh] rupees, 12[during such previous year; or
(iii) where the profits and gains from the business are deemed to be the profits and gains of the assessee under 13[section 44AE] 14[or section 44BB or section 44BBB], as the case may be, and the assessee has claimed his income to be lower than the profits or gains so deemed to be the profits and gains of his business, as the case may be, during such 15[previous year; or]]
16[(iv) where the profits and gains from the business are deemed to be the profits and gains of the assessee under section 44AD and he has claimed such income to be lower than the profits and gains so deemed to be the profits and gains of his business and his income exceeds the maximum amount which is not chargeable to income-tax during such previous year,]
keep and maintain such books of account and other documents as may enable the 17[Assessing] Officer to compute his total income in accordance with the provisions of this Act.
(3) The Board may, having regard to the nature of the business or profession carried on by any class of persons, prescribe18, by rules, the books of account and other documents (including inventories, wherever necessary) to be kept and maintained under sub-section (1) or sub-section (2), the particulars to be contained therein and the form and the manner in which and the place at which they shall be kept and maintained.
(4) Without prejudice to the provisions of sub-section (3), the Board may prescribe, by rules, the period for which the books of account and other documents to be kept and maintained under sub-section (1) or sub-section (2) shall be retained.]

Sec 44 AB: 19[Audit of accounts of certain persons carrying on business or profession.
2044AB. 21Every person,—
(a) carrying on business shall, if his total sales, turnover or gross receipts, as the case may be, in business exceed or exceeds 21a[22[sixty lakh rupees]] in any previous year 23[***]; or
(b) carrying on profession shall, if his gross receipts in profession exceed 23a[24[fifteen lakh rupees]] in any 25[previous year; or
(c) carrying on the business shall, if the profits and gains from the business are deemed to be the profits and gains of such person under 26[section 44AE ] 27[or section 44BB or section 44BBB], as the case may be, and he has claimed his income to be lower than the profits or gains so deemed to be the profits and gains of his business, as the case may be, in any 28[previous year; or]] 29[***]
30[(d) carrying on the business shall, if the profits and gains from the business are deemed to be the profits and gains of such person under section 44AD and he has claimed such income to be lower than the profits and gains so deemed to be the profits and gains of his business and his income exceeds the maximum amount which is not chargeable to income-tax in any previous year,]
get his accounts of such previous year 31[***] audited by an accountant before the specified date and 32[furnish by] that date the report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed :
33[Provided that this section shall not apply to the person, who derives income of the nature referred to in 34[***] section 44B or 35[section 44BBA], on and from the 1st day of April, 1985 or, as the case may be, the date on which the relevant section came into force, whichever is later :
Provided further that] in a case where such person is required by or under any other law to get his accounts audited 36[***], it shall be sufficient compliance with the provisions of this section if such person gets the accounts of such business or profession audited under such law before the specified date and 37[furnishes by] that date the report of the audit as required under such other law and a further report 38[by an accountant] in the form prescribed under this section.
Explanation.—For the purposes of this section,—
(i) "accountant" shall have the same meaning as in the Explanation below sub-section (2) of section 288;
39[(ii) "specified date", in relation to the accounts of the assessee of the previous year relevant to an assessment year, means 40[the due date for furnishing the return of income under sub-section (1) of section 139].]]