Applicability of 44aa

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Dear Freinds,

I have a question on the applicability of Section 44AA.

If an assessee chooses to get taxed on presumptive basis under section 44ADA, should he still maintain books required under section 44AA?

In section 44ADA there is a clause that says, if the assessee claims that his income is below the 50% threshold he has to maintian books specified u/s 44AA and get them audited.

Does this mean that if an assess chooses to be taxed under presumptive basis he need not maintain the books specified u/s 44AA?

Thanks

Sandeep

 

 

Replies (2)

Correct, as per sec. 44ADA if assessee declares minimum 50% profit margin, he is not required to maintain books as per sec. 44AA of IT act. (i.e. for income tax assessment/purpose only)

if you show income 50% or more than not required to maintain books of account.

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