Ashish M (Chartered Accountant) (2731 Points)
28 March 2010An individual assessee has a turnover of Rs.38 lacs for financial yr 08-09. His income comes out to be Rs.60000/- for the year as per income tax act. He doesn't opt for presumptive taxation:
My question is whether he is required to maintain books of accounts?
CA Babit Khurana
(learning is my passion)
(338 Points)
Replied 28 March 2010
Yes , offcourse he is required to maintain proper books of account if he is not choose presemptive income scheme.
Explanation of section 44 AA of Income tax Act, 1961
1) If a person is in specifed profession and his gross receipt Rs 150000 in last three p.y. then he is liable to maintain proper books of accounts ( Chartered Accountant.CS, Doctor, Film Artist or any notified profession )
2) If he is not in any specified profession then limit of Rs 150000, reduced to RS 120000.
Prasanth Nair V
(ACA,ACS,CWA Final,Mcom)
(557 Points)
Replied 29 March 2010
Yes, if u are not going for presumtive taxation, then you have to maintain your books, and be taxed as per ur income as per the income...
Raj Saxena (1412th Tiger)
(Struggling Student)
(272 Points)
Replied 29 March 2010
ya certainly he require to maintain the buks.
Ashish M
(Chartered Accountant)
(2731 Points)
Replied 30 March 2010
Dear all,
I was also holding the same view as u all r holding but when I saw the Supplementary study paper 2009 issued by the institute page no. 22 for May2010 containing amendments for the Direct Taxes, It says that since the income is below the taxable limit, the assessee is not required to file return at the very first place. and since no return is required to be filed, maintainance of books is not necessary.!!!!!!!!!!!!
For the suppourt of my reply, i m attaching that portion of the file:
Pls reply to the above..!!!!!!!!!!!!
Ashish M
(Chartered Accountant)
(2731 Points)
Replied 30 March 2010
The relevant file is also attached for reference. Pg. no. 22.!!!!!!!!!!!
CAclubindia
