Applicability of section 44aa

Hai Dear Experts,

Are the four cases specified in section 44AA regarding maintenance of books of account are mutually exclusive?. If an assessee opts to offer 8% profit under section.44AD (turnover below1 Crore) and he have turnover exceeds Rs. 10 lakhs. As per section 44AA he is not liable to maintain books of account. What is the logic behind in this section?

Replies (1)

Dear Dinu 

if an assessee is opting to go with sec 44ad then 44aa does not apply on the same and no need to maintain his books of a/c. 

the behind this is to gain tax from those people who run their small business and want to take the benefits of filling of return. Also by this they have made easier for people to pay taxes i.e 8% of turnover. Government has also issued itr-4s for the same. (in few words if i say : to make it simple and to collect some taxes on the same)

i hope this will give a little idea.

Regards 

 

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