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Case study for sec 44aa

NITIN SHARMA (ACCOUNTANT) (35 Points)

13 November 2018

If an individual (Not a Professional i.e. neither a hardware engineer nor a software engineer) earning money through repairing computers etc & received sum as labor charges & same time he is a trader. Will he cover in 44AA.

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2 Replies

Sudarshan Sarda (CHARTERED ACCOUNTANT) (241 Points)
Replied 13 November 2018

Originally posted by : NITIN SHARMA

YES

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Nitesh bind (Student CA Final ) (12692 Points)
Replied 20 November 2018

As per Sec 44AA(1) there are various categories of Professions which have to maintain books if their Gross Receipts are above 1,50,000/-. These are professionals like Doctors, Engineers, Architecture, CAs, Advocates etc. But your case doesn't cover in this clause.

Now coming to clause 44AA(2) under which other categories of Businesses and Professions [means other than 44AA(1)] are covered. YOUR CASE WILL BE COVERED UNDER THAT.
As per sec 44AA(2), If Your Turnover exceeds Rs. 10,00,000/- or Your Business Income (i.e.Net Profit) exceeds Rs. 1,20,000/- in either case you will be covered under Section 44AA.

So if your Total Receipts during the year exceeding the limit of Rs. 10 Lakhs OR Profit exceeds Rs. 1,20,000/- Then you'll maintain the books etc mandatorily.

Thanks.

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