Requirement of maintenance of books of accounts u/s 44aa

Once he opts for 44AD, irrespective of actual profits, it is deemed that the profits are earned @ 8% and the tax has to be paid on such presumptive income. And also you can avail the benefit of non maintenance of books.

Assessing officer can not question for maintenance once you opt for 44AD & he can be answered by showing provisions u/s 44AD.

When Sec.44AD is applies then it is deemed that the assesse's income is 8% of turnover/gross receipts. And this section is applicable on basis of turnover/gross receipts i.e Max 2crore (current threshold limit is 2 crore, previously it was 1 crore)

Generally, tax is computed Income- Expenses= Taxable business income. Here the taxpayers have to maintain books of account of the business. Income will be computed on the basis of the information revealed in the books of account. But in case of persons adopting 44AD tax is charged on Presumptive income at 8%.

So the point that the income is less than the maximum limit which is not chargeable to tax is not valid. Because tax is charged on presumptive basis. I hope Manish your query is resolved. All the best.

Agreed with AjinkyaK