04 June 2012
1. Section 44AA is applicable both to business and profession.
2. Profession is divided into 2 categories - specified profession & other profession. (a) Specified Profession - legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration. (b) All other fall in "Other Category"
3. Applicability of Section 44AA: (a) Specified Profession - Mandatory to maintain books of accounts irrespective of the amount of income/receipts. (b) Other professionals and business - If income exceeds Rs. 1.2 lakh or turnover/gross receipts exceed Rs. 10 lakhs in any one of the 3 years previous years.
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