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Life Insurance, etc. Agents – Maintenance of Books of A/cs

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This query is : Resolved

Manish (Querist)
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28 February 2011 Benefit of ad-hoc deduction from commission is available to the agents of Life Insurance/ UTI/ Post Office / Govt Secs. etc. if commission earned by them in a year is less that Rs. 60,000/-.
Does it mean that they have to maintain proper books of accounts if their commission receipt is equal to or more than Rs. 60,000/-? Many professionals and people believe as such, however, Sec. 44AA does not require this. Please suggest with case-laws and circulars/notifications/etc, if possible.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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28 February 2011 If the conditions as in 44AA(2) are satisfied, those assessee's has to keep and maintain such books of accounts (not necessarily the prescribed books of accounts)so as to enable the AO to compute the total income in accordance with the provisions of the IT Act,1961.

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