44AD and 44ADA
This query is : Resolved
Guest
Guest
(Querist)
03 June 2017
Persons opting for 44AD or 44ADA is not required to maintain books of accounts and documents..
Does that mean that they are not required to maintain proof of any expenditure or income??
Nikhil Kaushik
(Expert)
03 June 2017
they are expected to maintain record of gross receipts, bank statements etc.
Guest
Guest
(Querist)
03 June 2017
do they need to maintain bills and receipts for expenses
??
14 July 2024
Proof of Expenditure and Income:
Maintaining Documents: While books of accounts are not required, taxpayers under Section 44AD and Section 44ADA must maintain proof of:
Income earned (such as invoices, bills, receipts, contracts, etc.).
Expenditure incurred (such as bills, invoices, vouchers, receipts, bank statements, etc.).
Verification: The tax authorities may ask for these documents during assessment or scrutiny to verify the income declared and expenses claimed.
Importance of Documentation:
Compliance Requirement: Proper documentation is crucial to substantiate the income and expenses reported under presumptive taxation.
Audit Requirement: If the income declared under presumptive taxation is less than the prescribed rate (e.g., 8% of turnover for Section 44AD), the taxpayer may be required to undergo audit under Section 44AB, and proper documentation will be necessary.
Maintaining Documents: While books of accounts are not required, taxpayers under Section 44AD and Section 44ADA must maintain proof of:
Income earned (such as invoices, bills, receipts, contracts, etc.).
Expenditure incurred (such as bills, invoices, vouchers, receipts, bank statements, etc.).
Verification: The tax authorities may ask for these documents during assessment or scrutiny to verify the income declared and expenses claimed.
Importance of Documentation:
Compliance Requirement: Proper documentation is crucial to substantiate the income and expenses reported under presumptive taxation.
Audit Requirement: If the income declared under presumptive taxation is less than the prescribed rate (e.g., 8% of turnover for Section 44AD), the taxpayer may be required to undergo audit under Section 44AB, and proper documentation will be necessary.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Capital Gail Exemption Certificate
- Utilisation Fy 25-26 TDS challans in Fy 26-27 TDS Return
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Oct 2025 Invoices
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Issuing of delivery challan by seller of goods
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
