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Quaries in section 44aa

ATUSH RASTOGI (CHARTERED FIRM) (36 Points)

30 November 2016

Sir,

My Business Income is Rs.120000 but My Gross Receipt is Rs.5,00,000. As per Income tax act Section 44AA. books of account is mandatory or not.

Please give the answer.

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4 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178238 Points)
Replied 30 November 2016

Condition :Every person carrying on business or profession [not being a profession referred to in sub-section (1)]

Read: if his income from business or profession exceeds 6[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 7[ten lakh] rupees in any one of the three years immediately preceding the previous year; or.............

Not mandatory.

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Hitesh Khanna (Accounting & Finance Taxation Company Law Audit ) (839 Points)
Replied 30 November 2016

Yes , Mandatory to maintain books

CA Rizwan Saifi (Founder @ CharteredHelp) (117 Points)
Replied 01 December 2016

Every person carrying on business or profession is required to maintain books of accounts if his income from business or profession exceeds 1,20,000/- or his total sales, turnover or gross receipts, as the case may be, in business or profession exceed 10,00,000/- in any one of the three years immediately preceding the previous year.

Therefore in your case there is no need to maintain books of accounts.

But it is always benificial to maintain books of accounts. because maintaing books of accounts also help to analyse business position.