Books maitantance when it is required

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I HAVE IN THE FY 2015-16 RENTAL INCOME OF RS. 25,15,156/- LIABLE TO MAINTAIN BOOKS OF ACCOUNTS IN WHICH SECTION IS APPLICABLE FOR THE SAME
Replies (2)

Well, Mr. Trinath, The one section of The Income Tax Act, 1961 which mandates the Maintainence of Books of accounts in various instances is Section 44AA.

As per section 44AA(2)(i), 

"Every person carrying on business or profession [not being a profession referred to in sub-section (1)] shall,—

 (i)  if his income from business or profession exceeds Rs. 1,20,000 or his total sales, turnover or gross receipts, as the case may be, in business or profession exceed or exceeds Rs. 10,00,000 in any one of the three years immediately preceding the previous year;" 

In your case, mere rental income cannot be considered as a business unless you are doing so on a full-fledged basis for business purposes (ie, Real Estate Business).

 

Hence you are not required to maintain books of accounts if your income is mere rental income and not involved in Real Estate business. The only documentation you will be holding with regard to above will be the Rent/Lease Agreements and Bank statements.

Hope this helps.

Contrary views are encouraged.

TNKS FOR YOUR REPLY

WE HAVE RENTEL INCOME MORETHEN 25 LAKHS IN SINGLE PAN NUMBER THEREIS ANY SERVICE TAX LIBLITY FOR THE SAME

TOTAL NO OF SHOPS 15 FOR THE USE OF COMMERCIAL PURPOSE LIKE : TRADERS , CLOTH MERCHANTS , VEHICLE FINANCE , AND ALSO ONE BAR AND RESTURANT.

TNKS

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