Maintanance of a/c (Income Tax)

This query is : Resolved

MALAY DAS

( Author )
24 August 2012

sir
a commission holder agent has gross receipt
195000 can i show it no a/c case u/s 44aa(2) because the rule said any income from profession or business 1.2 lacs or gross receipt or sales or turnover less then 10 lacs- in this case assessee has gross receipt less then 10 lacs? confirm me sir.thanks

Dintakurthi Tirumala

( Expert )
24 August 2012

As per the section 44AA should be maintain books of account but in practice many of them not following. However as per section 44AD those who are offering their income under section 44AD no need to maintain books of accounts. I think you are in confision to under stand 44AA here i producing 44AA for your clarification with explanation.

The provision is: In the case of any assessee carrying on business or profession has exceeded Rs.1,20,000 in any of the three preceding previous year; or is likely to exceed Rs.1,20,000 during the current previous year in case of newly setup business or profession. Means whose income exceeds Rs.1,20,000 should be maintain books.

2) If the turnover or sales or gross receipts has exceeded Rs.10,00,000 in any of the three preceding year; or is likely to exceed Rs.10,00,000 during the current previous year in case of newly setup business or profession. Means irrespective of the income whose sales or etc... exceeds Rs.10,00,000 should be maintain books of account.

3) where the profits and gains from the business are deemed to be the profits and gains of the assessee under section 44AE,44BB,44BBB and the assessee has claimed his income lower than the income prescribed in those provisions during the previous year. Means those covers under these above sections but offering lower income than the income prescribed in such sections should be maintain books of account.

4) where the profits and gains from the business are deemed to be the profits and gains of the assessee u/s44AD and the assessee has claimed his income lower than the income prescribed u/s44AD and during such previous year hsi income exceeds the basic exemptions limit. Means who covers under this section but offering lower income than prescribed income as per this section and such income exceeded the basic exemption limit should be maintain books of accounts.

Those covers any one or more of the above provisions should be maintain books of account. However section 44AE,44BB,44BBB and 44AD gives exemption to maintain the books if the conditions satisfied in such sections.

So your case comes under 1st provision so you should be maintain books of account however you will get the exemption u/s 44AD if you offered 8% or more income on gross receipts.

OM SAI SRI SAI JAI JAI SAI

MALAY DAS

( Author )
24 August 2012

sir
thanks for detail. the problem is most of
commission holder no any books of a/c e.g.
expenditure a/c etc. then how I filling his return ? can I show his income u/s 44AD? clear me sir.

Dintakurthi Tirumala

( Expert )
25 August 2012

Yes, from A.Y.2011-12 commission agents also comes under 44AD. So you can show his income u/s 44AD.

OM SAI SRI SAI JAI JAI SAI

MALAY DAS

( Author )
25 August 2012

sir
thanks alot. different answer confused me.
now it is simple to file this type of return. that I need to fillup itr4s, tell me sir. thanks.

Dintakurthi Tirumala

( Expert )
25 August 2012

Yes, File ITR-4S.

OM SAI SRI SAI JAI JAI SAI

MALAY DAS

( Author )
28 August 2012

sir
Is there need any kinds of a/c,s u/s 44AD
if show income 8% on gross receipt or more?
advice me, thanks.

Dintakurthi Tirumala

( Expert )
28 August 2012

No, Any type of accounts not required to offer income u/s44AD i.e showing income 8% or more on gross receipts. But incase you offering lower income than 8% than required books of accounts.

So for offering income 8% or more not required any type of accounts but just you have to prove for the gross receipts if any but this requirement is very very rare.

So no a/c required.

OM SAI SRI SAI JAI JAI SAI