Harsimran Singh (Student) (204 Points)
11 December 2010
Hello all
I have a query that if A person wants to exceed my income from 120000/- without maintaining books of accounts while my gross receipts from commission is 276000/-.
Can u all plz shed some lights on the provisions of income tax and tell me whether its possible or not.
Parshu
(CA Final)
(84 Points)
Replied 11 December 2010
Dear Sim your question is not clear,i will try with the following for you:
As per Sec 44AA, if income is from profits & Gains from business then books of accounts is to be maintained if:
a) income exceeds Rs.120000
b)gross receipts/turnover/sales exceeds Rs.1000000 in 3 preceeding previous year or Rs.1000000 in current previous year in case of new business.
If income is from profits & Gains from Notified Profession then books of accounts is to be maintained if gross receipts exceeds Rs.150000 in 3 preceeding previous year or Rs.150000 in current previous year in case of new business.
In your case,you can claim maximum of 40% exp and ue income from business after exp will be 165600,which exceeds the limit of Rs.120000.Hence Books of Accounts is to be maintained.
Harsimran Singh
(Student)
(204 Points)
Replied 15 December 2010
Thanks Parshu
The Thing is I want to exceed one of my clients income from 120000/- without maintaining books of accounts.
Is it possible in any other way.
CAclubindia
