Regular books of accounts

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karan

karan (Querist)
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04 August 2012 which persons are required to maintain regular books of accounts under IT ACT?

CA Rahul Gupta

CA Rahul Gupta (Expert)
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04 August 2012 Professional:-if yearly gross receipts of the profession exceeded Rs 150000.

Other than Professional:if- either the income from business or profession exceeds Rs 120000 or the turnover or gross receipts exceed Rs 10 Lakhs in any one of the three years immediately preceding the previous year.

Presumptive Income scheme: The persons who are filling their return of income under the presumptive income scheme like under section 44AD or 44AE or 44AF etc are not require to compulsorily maintain books of account u/s 44AA. However where the profits and gains from the business are deemed to be profits and gains u/s 44AD or 44AE or 44AF or 44BB or 44BBB as the case may be, and the assessee has claimed his income to be lower than the profits or gains so deemed, then the books of accounts will be required to be maintained u/s 44AA.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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04 August 2012 We are in the era of negative lists and mentality.
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As you know, in service tax also a negative list has been provided.
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Further, our every parliamentarian abstains from making a law on corruption by keeping it in the negative list.
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As we have to be acquainted ourselves in the environment of negativity the reply here under is based on the similar theme-
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Briefly-

A person is not required to maintain Books of Account- in cases like-
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A. He is having only Salary and Interest Income as his regular source of income.
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B. He opts to show his business income U/s 44AD, 44AE or under other presumptive methods.
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C. If he is a professional/ businessman earning less than Rs 1.20 lac income
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D. If his Gross Receipts or turnover is less than Rs. 10.00 lac
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E. If he is having Capital Gains Income +44AD Business Income or Salary Income.
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F. If he is not a commission Agent, or is not earning income in the form of commission.
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If you want to know positively refer Section 44AA.

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