Sec 44AA

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This query is : Resolved

Yatin (Querist)

26 March 2009 Sir,

If an Advocate who is in specified profession under sec 44AA has an income of Rs.152000/- in his newly setup business for the assessment year 2008-2009. whether he was required to maintain books for the A.Y-2008-2009 or is required to maintain books for the A.Y-2009-2010.

CA LOKESH KASAT, FCA, M.Com

CA LOKESH KASAT, FCA, M.Com (Expert)

26 March 2009 In both the A.Y.
As per Section 44AA:
Where the profession has been newly set up in the PY, if gross total receipts for that year likely to exceed apecified amount.

Manmohan ACA, CS

Manmohan ACA, CS (Expert)

26 March 2009 yes, is estimated income likely to exceed the limit specified in section 44AA

Yatin

Yatin (Querist)

26 March 2009 Thanks, Mr. Manmohan and Mr.Lokesh for your answer. but sir, i want to know if an income was not likely to exceed but exceeded at the end of year then what will be happened. whether assessee will maintained books in the next year or in the same year. this is my case and ITO give notice to my client because i showed income of Rs.152000/- in newly setup business for the A.Y-2008-2009. What i should do in this case.

Vanita Rathi

Vanita Rathi (Expert)

26 March 2009 For specified professionals , the books of accounts are to be maintained from the very first day of starting the profession,as per Section 44AA(1).
The limit of 1.20 lacs is for other than specified professionals.

Yatin

Yatin (Querist)

26 March 2009 thanks madam for giving your valuable time to my query. but here i want to know that in case of non-specified profession or business if income is exeeded rs.1.20 lacs in previous year 2008-2009 in case of newly setup business then whether books will be maintained from the P.Y-2008-2009 or 2009-2010.

CA JAIMIN TRIVEDI

CA JAIMIN TRIVEDI (Expert)

26 March 2009 I agree with Vanita rathi. All legal professionals have to maintain the books of accounts from the first year itself regardless of the amount of total receipts or profits.