Deciding whether income from profession or business

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

06 January 2014 If any person has gross receipt of Rs.150000 in f.y.2011-12 for job work done for textile industries. Whether such person is liable to maintain his books of accounts as per Section 44 AA? it is to be noted that he has 101000 income under the head salary also for f.y.2011-12.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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06 January 2014 yes since as per sec 44AA if income exceeds rs 1,20,000 then books of accounts are compulsory to maintain books of accounts.

Querist : Anonymous

Querist : Anonymous (Querist)

06 January 2014 Thanks for your reply. Means this job work income will be considered as non specified professional income hence specified limit of Rs.120000.00 will be applicable. If it is specified professional income limit of Rs.150000.00 will be applicable. Am I right???? You sure na it will be not income from business????

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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06 January 2014 Under sec 44AA it clearly mentions that once your income exceeds rs 1,20,000 then books of accounts needs to be maintained by you , pls check it.

Querist : Anonymous

Querist : Anonymous (Querist)

06 January 2014 Requested to refer below mentioned link in that limit of Rs.150000.00 is also avaialble.

My question is that whether job worker falls under the category of Rs.150000.00 or Rs.120000.00

https://taxguru.in/income-tax/compulsory-maintenance-of-books-of-account-under-income-tax-act-1961.html

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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06 January 2014 What exact work u undertaking u havent mentioned it if u providing any service and tds under sec 194J is applicable and deducted b4 u get your income then the limit of 1,50,000 for professional will be applicable,

else 1,20,000 will be applicable.

Querist : Anonymous

Querist : Anonymous (Querist)

06 January 2014 No TDS is deducted from income received. Job work for textile printing is exact scope of work.

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