Sec 44aa

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 October 2013 PLEASE EXPLAIN SEC 44AA.IS it applicable to assessee who comes under audit cases u/s 44AB .AS automatically there income exceeds 1.20lacs.is it appicable to assesee declaring income lower than 44AD PRESUMPTIVE INCOME.Should clause 9(a)
be marked as "yes" in these two cases.

CA Pallav Singhania

CA Pallav Singhania (Expert)
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08 October 2013 If a person carrying on business / profession and income from such business/ profession has exceeded 1,20,000 in any of the three Previous Years (p.y.) or current p.y. (for newly set up business)

If turnover / gross receipts has exceeded Rs 10 lacks in any of the three p.y. or current p.y. (for newly set up business)

For business set up in p.y. 12-13 and during that year turnover has exceeded 10 lacks or income has exceeded 1,20,000 , a person should maintain books of accounts.

Other cases :
If turnover or income has exceeded those limits in p.y. 09-10 or 10-11 or 11-12, a person should maintain books of accounts.

Note: limits of 1,20,000 should be increased to 1,50,000 for professions notified in rule 6f.

Where assessee is showing profit under presumptive taxation u/s 44AA, 44BB, 44BBB, he is showing lower profit than prescribed in those sections .

Where assessee is showing profit under presumptive taxation u/s 44AD , he is showing lower profit than prescribed in that section and DURING THAT PREVIOUS YEAR HIS INCOME EXCEEDED THE BASIC EXEMPTION LIMIT.

SO if assessee has income lower than basic exemption limit or loss , he can show profit less than 8% without maintaining books of accounts.