Section 44AA of Income Tax Act and rule 6F of Income Tax rules deal with the provisions regarding maintenance of books of account under Income tax Act.
However in ITR-4, Part A-BS term used is “Regular Books of Accounts”.
Please clarify
(a) the difference between the terms “books of account” used in Section 44AA and “Regular books of accounts” in ITR-4;
(b) which word is correct "Account" in Section 44AA or "Accounts" in ITR-4.
(a) the difference between the terms “books of account” used in Section 44AA and “Regular books of accounts” in ITR-4;
Section 44AA talks about compulsory maintenance of accounts by certain persons
Case 1. according to sec 44AA, persons carrying on a "specified profession" (legal, medical, engineering etc.), whose gross receipts in profession exceed Rs. 150,000 in all three year immediately preceding the previous year
and if newly set up in previous year, his gross receipts is likely to exceed Rs. 150,000.
Persons coming in above category are required to maintain such books as are prescribed by Rule 6F
Case 2. other than case 1, subject to certain provisions, are required to maintained such books of account and other documents, which may enable to compute taxable income
However in ITR-4, Part A-BS term used is “Regular Books of Accounts”.
other than case 1 type persons and those persons are required to maintain books of account mandatory under sec 44AB, may also maintain books of account and fill complete details of book of account in their ITR (as required by other applicable act)
Section 44AA(1) of Income Tax provides that Every person carrying on …. shall keep and maintain such books of account…
Part A-BS of ITR-4 is BALANCE SHEET AS ON 31ST DAY OF MARCH……. OF THE PROPRIETORY BUSINESS (fill items 1 to 5 in a case where regular books of accounts are maintained, otherwise fill item 6)
Similarly,
Part A-P& L of ITR-4 is - Profit and Loss Account for the previous year...the proprietary business (fill items 1 to 50 in a case where regular books of accounts are maintained, otherwise fill item 51)
Specific queries are
a) the difference between the terms “books of account” used in Section 44AA and “Regular books of accounts” in ITR-4;
b) which term is correct " Books of Account" used in n Section 44AA or " Books of Accounts" used in ITR-4.
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