194 D and 194 H

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Individuals receiving commission income typically need to file tax returns with full financial records. However, there's an option to file without detailed Profit & Loss statements and balance sheets. This is generally permissible if your income doesn't exceed certain thresholds or if specific conditions under Section 44AA of the Income Tax Act are met, particularly concerning businesses newly set up or those covered under presumptive taxation schemes.

RAJANEESH V R

RAJANEESH V R (Querist)
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16 July 2022 Sir,
Normally Assesse who receive commission income is required to file return of income with books of accounts. But there is an option to file return of them without books of accounts. Upto which amount of commission, we can file return without books, ie without P&L and balance Sheet?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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16 July 2022 As per sec. 44AA(2) for individual/HUF
Every person carrying on business or profession [not being a profession referred to in sub-section (1)] shall,—
(i) if his income from business or profession exceeds Two lakh Fiftyty thousand rupees or his total sales, turnover or gross receipts, as the case may be, in business or profession exceed or exceeds twenty five lakh rupees in any one of the three years immediately preceding the previous year; or

(ii) where the business or profession is newly set up in any previous year, if his income from business or profession is likely to exceed two lakh fifty thousand rupees or his total sales, turnover or gross receipts, as the case may be, in business or profession are or is likely to exceed twenty five lakh rupees, during such previous year; or

(iii) where the profits and gains from the business are deemed to be the profits and gains of the assessee under section 44AE or section 44BB or section 44BBB, ...............; or
(iv) where the provisions of sub-section (4) of section 44AD are applicable in his case and his income exceeds the maximum amount which is not chargeable to income-tax in any previous year,
keep and maintain such books of account and other documents as may enable the Assessing Officer to compute his total income in accordance with the provisions of this Act.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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20 September 2025 Good Luck.

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