Book of account- section 44aa
This query is : Resolved
30 March 2015
Dear Experts,
My client is an Individual. He was working with a MNC. After retirement in FY 2013-14 , he is has been kept on retainership basic. He is being paid Professional Fee and TDS is being Deducted accordingly. His profession can be classified as " Non specified profession" for the purpose of Section 44AA. His gross receipt is less than 10 L during FY 2013-14 but net income is 2.63 lac. If I declare income from profession as 2.63 Lac, books of account required to be maintained in terms of Sec 44AA and if I declare Income from profession less than 1.2 lac, books of account needs not to be maintained.
In such situation, should I declare income from profession less than Rs 1.2 L as my client is not maintaining such books of account.
My client is an Individual. He was working with a MNC. After retirement in FY 2013-14 , he is has been kept on retainership basic. He is being paid Professional Fee and TDS is being Deducted accordingly. His profession can be classified as " Non specified profession" for the purpose of Section 44AA. His gross receipt is less than 10 L during FY 2013-14 but net income is 2.63 lac. If I declare income from profession as 2.63 Lac, books of account required to be maintained in terms of Sec 44AA and if I declare Income from profession less than 1.2 lac, books of account needs not to be maintained.
In such situation, should I declare income from profession less than Rs 1.2 L as my client is not maintaining such books of account.
31 March 2015
If tds deducted under sec 194J then refer this link but u have not mentioned his profession.
https://www.charteredclub.com/section-44aa/
https://www.charteredclub.com/section-44aa/
31 March 2015
Thanks for your reply...
He is not qualified engineer but based on experience he is appointed as consultant to co-ordinate various construction projects for availability & movement of P&M. It does not involve any technical consultancy. Earlier he was paid salary...but after retirement he is being paid professional fee...
He is not qualified engineer but based on experience he is appointed as consultant to co-ordinate various construction projects for availability & movement of P&M. It does not involve any technical consultancy. Earlier he was paid salary...but after retirement he is being paid professional fee...
31 March 2015
if professional fees are paid and not salary then tds must have been deducted u/s 194J hence still he will be providing profeesional/ technical service only and hence u check the rule 6f in this link will be applicable.
31 March 2015
We can classify the profession as "non specified profession"...
For non specified profession books of a/c to be maintained if"
1. Gross receipt is more than 10 Lac OR
2. Income from profession is more than 1.2 Lac
In my case gross receipt is less than 10 Lac...but Income from profession is more than 1.2 Lac.
my question is can I avoid applicability of Section 44AA & rule 6F by declaring Income from profession less than Rs 1.2 Lac................
For non specified profession books of a/c to be maintained if"
1. Gross receipt is more than 10 Lac OR
2. Income from profession is more than 1.2 Lac
In my case gross receipt is less than 10 Lac...but Income from profession is more than 1.2 Lac.
my question is can I avoid applicability of Section 44AA & rule 6F by declaring Income from profession less than Rs 1.2 Lac................
31 March 2015
yes as you are showing profeesional reciepts below 1.2 lacs p.a then sec 44AA and rule 6F shall not be applicable but if they deduct tds u/s 194J then its deemed that you are providing prof/ technical service so bit tricky situation....
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