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Income from software development

28 September 2015

one of the my client is doing business as follows... he developed software in India and export to USA. the total turnover for financial year is 22,00,000/-.now he is liable to maintain books u/s 44AA??

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3 Replies

Karthik.V.Kulkarni (Chartered Accountant) (594 Points)
Replied 29 September 2015

Hi Lakshman,

Yes your client is liable to maintain books of accounts as per sec 44AA if the total sales, turnover or gross receipts in any of the preceeding 3 PY exceeds Rs 10,00,000 and PGBP exceeds Rs 1,20,000. If it is newly set up and in the concerned PY it exceed rs 10,00,000 and PGBP exceeds Rs 1,20,000.

Hence the requirement to maintain books of accounts arises when you come under the above specified condition.

Regards

Karthik V Kulkarni

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Miss Rinkal (Student) (1309 Points)
Replied 29 September 2015

Is your client claiming deduction u/s10AA.? Also please clarify your clients business is a company or prop firm ?

If yes, Then you cannot apply SEC 44AD and thus it will become mandatory to maintain books of accounts u/s. 44AA as the turnover exceeds the limits specified in Sec 44AA