Sec 44AA
This query is : Resolved
10 January 2017
Why in tax audit report we select ' NO' in question wheather BOA prescribed as per sec 44AA even if t/o exceeds rs 120000.
11 January 2017
Rule 6F prescribes maintenance of BOA for legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or authorised representative or film artist and not for other professional
12 January 2017
OK it means for business any books which help for computation of assesse's income u/s 44AA,book s are not specifically prescribed.
23 July 2025
Yes, you are correct! Here's a breakdown of the situation:
### **Section 44AA: Maintenance of Books of Accounts (BOA)**
1. **For Business vs. Profession:**
* Under **Section 44AA**, businesses and professions are treated differently when it comes to the maintenance of books of accounts.
* For certain **professions**, specific **books of accounts (BOA)** are prescribed under **Rule 6F** of the Income Tax Rules (for professions such as legal, medical, engineering, etc.). This is why when you select **"NO"** for the question in the tax audit report about BOA prescribed under Section 44AA, it’s because the question applies primarily to the **specific professions** listed in **Rule 6F**.
2. **For Professionals (Rule 6F):**
* **Professions** like **legal**, **medical**, **engineering**, **architectural**, **accountancy**, **technical consultancy**, and **interior decoration** (among others) **must maintain specific books** as per **Rule 6F** if their **gross receipts exceed Rs. 1.5 lakh**.
* **For these professions**, the **books of accounts** are **prescribed** and need to be maintained.
3. **For Business (No Specific BOA):**
* For **businesses**, the **books of accounts** are not prescribed in the same manner. A business is simply required to maintain **books** that help in **computation of income**, but there are no **specific books** prescribed by the Income Tax Act, like in the case of professions.
* If **gross receipts** or **turnover** exceed Rs. 1.2 lakh for **businesses**, you will still maintain books, but they don’t need to follow any specific format (unless the business is subject to other specific provisions, like **Section 44AA** for certain types of businesses).
### **Why "NO" in Tax Audit Report?**
When completing the **Tax Audit Report**, you select **"NO"** to the question about **prescribed books of accounts (BOA)** for businesses because:
* Businesses don't have **prescribed** books under **Section 44AA**. You only need to maintain **adequate books** that help in the calculation of income, but there are **no specific book formats** prescribed for businesses (unlike the professions mentioned under **Rule 6F**).
### **In Summary:**
* **Professionals** (legal, medical, engineering, etc.) must follow **specific book formats** under **Rule 6F**.
* **Businesses** are only required to maintain books that help in **computation of income** but don’t need to follow any **prescribed format**.
* Therefore, even if **turnover exceeds Rs. 1.2 lakh**, you select **"NO"** in the tax audit report for businesses since no specific books are prescribed for them.
Let me know if that clears up the confusion!
### **Section 44AA: Maintenance of Books of Accounts (BOA)**
1. **For Business vs. Profession:**
* Under **Section 44AA**, businesses and professions are treated differently when it comes to the maintenance of books of accounts.
* For certain **professions**, specific **books of accounts (BOA)** are prescribed under **Rule 6F** of the Income Tax Rules (for professions such as legal, medical, engineering, etc.). This is why when you select **"NO"** for the question in the tax audit report about BOA prescribed under Section 44AA, it’s because the question applies primarily to the **specific professions** listed in **Rule 6F**.
2. **For Professionals (Rule 6F):**
* **Professions** like **legal**, **medical**, **engineering**, **architectural**, **accountancy**, **technical consultancy**, and **interior decoration** (among others) **must maintain specific books** as per **Rule 6F** if their **gross receipts exceed Rs. 1.5 lakh**.
* **For these professions**, the **books of accounts** are **prescribed** and need to be maintained.
3. **For Business (No Specific BOA):**
* For **businesses**, the **books of accounts** are not prescribed in the same manner. A business is simply required to maintain **books** that help in **computation of income**, but there are no **specific books** prescribed by the Income Tax Act, like in the case of professions.
* If **gross receipts** or **turnover** exceed Rs. 1.2 lakh for **businesses**, you will still maintain books, but they don’t need to follow any specific format (unless the business is subject to other specific provisions, like **Section 44AA** for certain types of businesses).
### **Why "NO" in Tax Audit Report?**
When completing the **Tax Audit Report**, you select **"NO"** to the question about **prescribed books of accounts (BOA)** for businesses because:
* Businesses don't have **prescribed** books under **Section 44AA**. You only need to maintain **adequate books** that help in the calculation of income, but there are **no specific book formats** prescribed for businesses (unlike the professions mentioned under **Rule 6F**).
### **In Summary:**
* **Professionals** (legal, medical, engineering, etc.) must follow **specific book formats** under **Rule 6F**.
* **Businesses** are only required to maintain books that help in **computation of income** but don’t need to follow any **prescribed format**.
* Therefore, even if **turnover exceeds Rs. 1.2 lakh**, you select **"NO"** in the tax audit report for businesses since no specific books are prescribed for them.
Let me know if that clears up the confusion!
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GSTR9- ITC
- Audit of F and O T/O
- GST 9- Table 8
- REVENUE RECOGNITION AS PER IND AS 115
- RCM on GTA Services
- How to update Transaction data in broker samco account holding after transfer shares KARVY
- Applicablity on tds
- Unable to generate and save json file for updated return
- GST payable under RCM
- WRONGLY UPLOADED 10IF FOR COOPERATIVE SOCIETY
- Related to Rate of Depreciation
- Mismatch of Sales Invoice in GSTR-1
- Query on Mismatch of Sales Invoice in GSTR-1
- Import purchase entry
- Rule 54(1A) for Distributing ITC
- EXCESS CREDIT REALTED GST REVERSAL
- Export invoice not reported
- CA Articleship Extension Matter
- GST OFFICER WRONG NOTICE
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
Trending Online Classes
CAclubindia
